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Church Director Liability Under Arizona’s Business Judgment Rule

Church Director Liability Under Arizona’s Business Judgment Rule

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Directors of churches are classified in Arizona law as directors of nonprofits. Arizona statutes provide a standard of conduct for such directors, along with protections for them. For purposes of director liability, whether the church has been incorporated or remained unincorporated is not taken into consideration. A church director will not be held liable for actions taken in accordance with their role under what is known as the “business judgment rule.”.

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