2005-04-11

Relation and Liability of Directors and Officers to Bank and Bank Holding Company Stockholders

The Louisiana Legislature enacted this statute to establish the fiduciary duties and personal liability standards for directors and officers of banks and bank holding companies. The law limits personal monetary liability to instances of gross negligence or greater disregard, including intentional torts and breaches of loyalty, while granting directors full protection for good-faith reliance on corporate records and expert advice. It designates the provision as the exclusive governing law for these relationships, preserves shareholders' rights to amend articles of incorporation accordingly, and allows courts to award attorney fees against parties who unsuccessfully seek higher liability standards.

United States

Louisiana Office of Financial Institutions

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