California – AB 491, effective January 1, pertains to operating corporations during an emergency

December 18, 2013

Assembly Bill 491 (Chapter 255) signed by the governor September 6 and effective January 1, 2014 authorizes a corporation or nonprofit corporation to take actions in anticipation of or during an emergency, to conduct ordinary business operations and affairs in an emergency, and provide that any action taken in good faith in anticipation of or during an emergency under this authorization would bind these corporations and not be a basis to impose liability on a corporate director, officer, employee, or agent, and authorizes the adoption of bylaws to manage and conduct ordinary business affairs effective only in an emergency.  Read the bill text here.