501.407 Personal liability — indemnification.
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/ia/chapter-501-closed-cooperatives/501-407A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. The articles may contain a provision eliminating or limiting the personal liability of a director, officer, or interest holder of the cooperative for money damages for any action taken, or any failure to take action as a director, officer, or interest holder, except liability for any of the following:
a. An intentional infliction of harm on the cooperative or its members.
b. An intentional violation of criminal law.
c. The amount of a financial benefit received by the person to which the person is not entitled.
d. An act or omission occurring prior to the date when the provision in the articles becomes effective.
2. The articles may contain a provision permitting or making obligatory indemnification of a director or officer for liability, as defined in section 501.411, to any person for any action taken, or any failure to take any action, as a director or officer, except liability for any of the following:
a. Receipt of a financial benefit to which the person is not entitled.
b. An intentional infliction of harm on the cooperative or its members.
c. An intentional violation of criminal law.
96 Acts, ch 1010, §28; 98 Acts, ch 1152, §18, 19, 69; 2003 Acts, ch 66, §15; 2004 Acts, ch 1101, §69
Referred to in §501.406, 501.412, 501.414