Liability of Officers of Nonprofit Organizations.

Ala. Code tit. 10A, ch. 20, art. 16

in effect

Ala. Code § 10A-20-16.01 Legislative Intent.

10A-20-16.01. Legislative Intent. The Legislature finds and declares that the services of nonprofit corporations, organizations, associations, boards, authorities, and commissions are critical to the efficient conduct and management of the public, civic, and charitable affairs of the citizens of this state. Noncompensated officers, directors, trustees, partners, managers, members, and governing persons and other members of governing authorities of such nonprofit entities must be permitted to operate without undue concern for the possibility of litigation arising from the discharge of their duties as policymakers. (Acts 1987, No. 87-706, p. 1242, §1; §10-11-1; amended and renumbered by Act 2009-513, p. 967, §354; Act 2020-73, §10.)

Ala. Code § 10A-20-16.02 Definitions.

10A-20-16.02. Definitions. The following terms shall have the following respective meanings for the purposes of this chapter: (1) OFFICER. Any officer, director, trustee, partner, manager, member, and governing person and other member of the governing authority of a qualified entity who does not receive compensation for serving in such capacity. A per diem amount of not more than three hundred dollars ($300) per day and actual, reasonable, and necessary expenses shall not constitute compensation for the purposes of this article. Provided, however, that the immunity granted herein shall not extend to officers, directors, trustees, partners, managers, or members of any board, authority, or commission dealing with pari-mutuel betting, gambling, or games of chance. (2) QUALIFIED ENTITY. a. Any nonprofit corporation, association, or organization which is exempt from federal income taxation under Section 501(c) of the Internal Revenue Code of 1986, as amended; b. Any nonprofit corporation, association, or organization which is organized pursuant to Section 10A-4-1.01, et seq.; c. Any organization organized under Sections 22-51-1, 22-51-2, 22-51-3, 22-51-4, 22-51-5, 22-51-6, 22-51-7, 22-51-8, 22-51-9, 22-51-10, 22-51-11, 22-51-12, 22-51-13, and 22-51-14; d. Any self-insured fund established pursuant to Section 11-26-1, 11-26-2, 11-30-2, or 25-5-9, provided, however, this chapter shall not apply to any self-insured employer operating under Section 25-5-8; and e. Any board, authority, or commission the members of which are appointed by the governing body or bodies of any county or municipality, or by the Governor or other constitutional officer or member of the Legislature pursuant to legislative or constitutional authorization, or the members of which are constitutionally or legislatively delegated. (Acts 1987, No. 87-706, p. 1242, §2; §10-11-2; amended and renumbered by Act 2009-513, p. 967, §354; Act 2020-73, §10.)

Ala. Code § 10A-20-16.03 Officer Immune from Suit; Exception for Willful Misconduct, Fraud, or Gross Negligence; For-Profit Subsidiary Not Immune.

10A-20-16.03. Officer Immune from Suit; Exception for Willful Misconduct, Fraud, or Gross Negligence; For-Profit Subsidiary Not Immune. Any noncompensated officer of a qualified entity shall be immune from suit and not subject to civil liability arising from the conduct of the affairs of the qualified entity except when the act or omission of the officer, which gives rise to a cause of action, amounts to willful or wanton misconduct or fraud, or gross negligence. Provided however, such immunity shall not, except to the extent as may otherwise be provided by law, extend to the qualified entity, to a for-profit subsidiary of the qualified entity, or to the officers of such for-profit subsidiary but only to the qualified entity’s officers as defined in this article. Nothing contained herein shall be construed to immunize the corporate entity or qualified entity for the acts or omissions of noncompensated officers as defined in this article. (Acts 1987, No. 87-706, p. 1242, §3; §10-11-3; amended and renumbered by Act 2009-513, p. 967, §354.)

Ala. Code § 10A-20-16.04 Application.

10A-20-16.04. Application. Nothing in this article shall be construed to affect any civil action brought by any qualified entity against any officer of such qualified entity or to create any liability that did not exist prior to the article’s passage or to diminish any immunity from suit or liability now enjoyed by a qualified entity or any officer thereof. The provisions of this article shall not apply to any claim, cause of action, action, or suit brought against an officer for any personal injury to or death of another person or property damage arising out of an accident inflicted by that officer while acting within the line and scope of the officer’s duties. (Acts 1987, No. 87-706, p. 1242, §4; §10-11-4; amended and renumbered by Act 2009-513, p. 967, §354.)

Ala. Code § 10A-20-16.05 Construction.

10A-20-16.05. Construction. Nothing in this article shall be construed to affect any action brought under Title 41, Chapter 5. (Acts 1987, No. 87-706, p. 1242, §5; §10-11-5; amended and renumbered by Act 2009-513, p. 967, §354.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026