California · Education Code

EDC §72678: No contract or other transaction entered into by the board of directors of an auxiliary organization is void under the provisions of Section 72677; nor shall any member of such board be disqualified o

Civil

What this law says, in plain English

This statute protects board contracts and members from liability under Section 72677 when financial conflicts are disclosed, noted in minutes, approved without interested members voting, and the transaction is fair to the organization.

Read the full statutory text

No contract or other transaction entered into by the board of directors of an auxiliary organization is void under the provisions of Section 72677; nor shall any member of such board be disqualified or deemed guilty of misconduct in office under such provisions, if both of the following conditions are met: (a) The fact of such financial interest is disclosed or known to the board of directors and noted in the minutes, and the board thereafter authorizes, approves, or ratifies the contract or transaction in good faith by a vote sufficient for the purpose without counting the vote or votes of such financially interested member or members. (b) The contract or transaction is just and reasonable as to the auxiliary organization at the time it is authorized or approved.

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