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§ 517. Limitation on standing

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 15 Pa.C.S.A. Corporations and Unincorporated AssociationsEffective: January 3, 2023

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 15 Pa.C.S.A. Corporations and Unincorporated Associations (Refs & Annos)
Part II. Corporations (Refs & Annos)
Subpart A. Corporations Generally
Chapter 5. Corporations
Subchapter B. Fiduciary Duty and Indemnification
Effective: January 3, 2023
15 Pa.C.S.A. § 517
§ 517. Limitation on standing
The duty of the board of directors, committees of the board and individual directors under section 512 (relating to standard of care, justifiable reliance and business judgment rule) is solely to the domestic corporation and not to any shareholder, member or creditor or any other person or group, and may be enforced directly by the corporation or may be enforced by an action in the right of the corporation, and may not be enforced directly by a shareholder, member or creditor or by any other person or group. Notwithstanding the preceding sentence, sections 515(a) and (b) (relating to exercise of powers generally) and 516(a) (relating to alternative standard) do not impose upon the board of directors, committees of the board and individual directors any legal or equitable duties, obligations or liabilities or create any right or cause of action against, or basis for standing to sue, the board of directors, committees of the board and individual directors.

Credits

1990, Dec. 19, P.L. 834, No. 198, § 102, imd. effective. Amended 2022, Nov. 3, P.L. 1791, No. 122, § 26, effective in 60 days [Jan. 3, 2023].
15 Pa.C.S.A. § 517, PA ST 15 Pa.C.S.A. § 517
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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