(a) Joint management and control of assets. Except as otherwise provided in subsections (b) and (c), the Trustees jointly shall manage and control the assets of the System and each Trustee, when acting as a fiduciary, shall use reasonable care to prevent another Trustee from committing a breach of fiduciary responsibility.
(b) Responsibilities. The Board may allocate specific responsibilities, obligations, and duties among the Trustees and designate any other person to carry out the responsibilities of a fiduciary.
(c) Limitation on liability.
(1) If the Board makes an allocation or designation to a person under subsection (b), the Board is not liable for an act or omission of that person except to the extent that the Board violates § 5-2-402 with respect to the allocation or designation; the establishment or implementation of a procedure to allocate or designate; or the continuance or review of the allocation or designation.
(2) Except as otherwise provided in subsection (c)(1), a Trustee to whom certain responsibilities, obligations, or duties have not been allocated is not liable, either individually or as a Trustee, for any loss resulting to the System arising from an act or omission of another person to whom the responsibilities, obligations, or duties have been allocated.
(1985 Code, Art. 7, § 2-403) (Bill No. 88-96; Bill No. 90-01)