605.0408 Reimbursement, indemnification, advancement, and insurance.
318 words·~1 min read·
/fl/title-xxxvi/chapter-605/605-0408·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)A limited liability company may reimburse a member of a member-managed company or a manager of a manager-managed company for any payment made by the member or manager in the course of the member’s or manager’s activities on behalf of the company if the member or manager complied with ss. 605.0407 - 605.04074 , this section, and s. 605.04091 in making the payment.
(2)A limited liability company may indemnify and hold harmless a person with respect to a claim or demand against the person and a debt, obligation, or other liability incurred by the person by reason of the person’s former or present capacity as a member or manager if the claim, demand, debt, obligation, or other liability does not arise from the person’s breach of s. 605.0405 , s. 605.0407 , s. 605.04071 , s. 605.04072 , s. 605.04073 , s. 605.04074 , or s. 605.04091 .
(3)In the ordinary course of its activities and affairs, a limited liability company may advance reasonable expenses, including attorney fees and costs, incurred by a person in connection with a claim or demand against the person by reason of the person’s former or present capacity as a member or manager if the person promises to repay the company in the event that the person ultimately is determined not to be entitled to be indemnified under subsection (2).
(4)A limited liability company may purchase and maintain insurance on behalf of a member or manager of the company against liability asserted against or incurred by the member or manager in that capacity or arising from that status even if:
(a)Under s. 605.0105 (3)(g), the operating agreement could not eliminate or limit the person’s liability to the company for the conduct giving rise to the liability; and
(b)Under s. 605.0105 (3)(p), the operating agreement could not provide for indemnification for the conduct giving rise to the liability.