501.417 Indemnification of officers.
264 words·~1 min read·
/ia/chapter-501-closed-cooperatives/501-417A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. A cooperative may indemnify and advance expenses under this part to an officer of the cooperative who is a party to the proceeding because the person is an officer, according to both of the following:
a. To the same extent as to a director.
b. If the person is an officer but not a director, to such further extent as may be provided by the articles of association, the bylaws, a resolution of the board of directors, or contract, except for either of the following:
(1)Liability in connection with a proceeding by or in the right of the cooperative other than for reasonable expenses incurred in connection with the proceeding.
(2)Liability arising out of conduct that constitutes any of the following:
(a)Receipt by the officer of a financial benefit to which the officer is not entitled.
(b)An intentional infliction of harm on the cooperative or the interest holders.
(c)An intentional violation of criminal law.
2. The provisions of subsection 1, paragraph “b”, shall apply to an officer who is also a director if the basis on which the officer is made a party to a proceeding is an act or omission solely as an officer.
3. An officer of a cooperative who is not a director is entitled to mandatory indemnification under section 501.413, and may apply to a court under section 501.415 for indemnification or an advance for expenses, in each case to the same extent to which a director may be entitled to indemnification or an advance for expenses under those provisions.
Referred to in §501.411