NRS 81.840
Duties of managers.

1.

A manager owes to the unincorporated nonprofit association and to its members the fiduciary duties of loyalty and care.

2.

A manager shall manage the unincorporated nonprofit association in good faith, in a manner the manager reasonably believes to be in the best interests of the association, and with such care, including reasonable inquiry, as a prudent person would reasonably exercise in a similar position and under similar circumstances. A manager may rely in good faith upon any opinion, report, statement or other information provided by another person that the manager reasonably believes is a competent and reliable source for the information.
3. After full disclosure of all material facts, a specific act or transaction that would otherwise violate the duty of loyalty by a manager may be authorized or ratified by a majority of the members that are not interested directly or indirectly in the act or transaction.

4.

A manager that makes a business judgment in good faith satisfies the duties specified in subsection 1 if the manager:
(a) Is not interested, directly or indirectly, in the subject of the business judgment and is otherwise able to exercise independent judgment;
(b) Is informed with respect to the subject of the business judgment to the extent the manager reasonably believes to be appropriate under the circumstances; and
(c) Believes that the business judgment is in the best interests of the unincorporated nonprofit association and in accordance with its purposes.

5.

The governing principles in a record may limit or eliminate the liability of a manager to the unincorporated nonprofit association or its members for damages for any action taken, or for failure to take any action, as a manager, except liability for:

(a)

The amount of financial benefit improperly received by a manager;

(b)

An intentional infliction of harm on the association or one or more of its members;

(c)

An intentional violation of criminal law;

(d)

Breach of the duty of loyalty; or

(e)

Improper distributions.

Source: Section 81.840 — Duties of managers., https://www.­leg.­state.­nv.­us/NRS/NRS-081.­html#NRS081Sec840.

Last Updated

Feb. 5, 2021

§ 81.840’s source at nv​.us