§ 9240 Director Religious Considerations

Corporations Code·California

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Key Takeaways

•Directors have the same responsibilities whether they get paid or not.
•Directors can make decisions based on their religious beliefs if they act in good faith.
•Certain probate laws do not apply to directors of corporations.

Example

A director of a religious organization decides not to invest in a company that sells alcohol because it goes against their religious beliefs.

The director can make this decision based on their religious beliefs, as long as they are acting in good faith.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

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§ 9240 Director Religious Considerations

(a) Any duties and liabilities set forth in this article shall apply without regard to whether a director is compensated by the corporation. (b) Part 4 (commencing with Section 16000) of Division 9 of the Probate Code does not apply to the directors of any corporation. (c) A director, in making a good faith determination, may consider what the director believes to be: (1) The religious purposes of the corporation; and (2) Applicable religious tenets, canons, laws, policies, and authority. (Amended by Stats. 1987, Ch. 923, Sec. 1.4. Operative January 1, 1988, by Sec. 103 of Ch. 923.)

Last verified: January 23, 2026

Key Terms

duties and liabilities good faith determination religious purposes religious tenets

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 9240.

Key Takeaways

Example

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Key Takeaways

Example

Key Terms

Related Statutes

References