RS 12:1-832
275 words·~1 min read·
/la/title-12/12-752A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
RS 12:1-832
§1-832. Protection against monetary liability
A. Except to the extent that the articles of incorporation limit or reject the protection against liability provided by this Section, no director or officer shall be liable to the corporation or its shareholders for money damages for any action taken, or any failure to take action, as a director or officer, except for one of the following:
(1)A breach of the director's or officer's duty of loyalty to the corporation or the shareholders.
(2)An intentional infliction of harm on the corporation or the shareholders.
(3)A violation of R.S. 12:1-833.
(4)An intentional violation of criminal law.
B. The liability of a director or officer for conduct described in Paragraphs (A)(1) through
(4)of this Section may not be limited or eliminated, but the corporation may purchase insurance against that liability as provided in R.S. 12:1-857.
C. For purposes of this Section, the duty of loyalty does not include any duty to act with any degree of care in the exercise of the director's or officer's responsibilities to the corporation or its shareholders.
D. A provision in a corporation's articles of incorporation that became effective before January 1, 2015, and that purports to protect a director or officer of the corporation against monetary liability to the corporation or its shareholders, shall not operate as a limitation of the protection against liability provided by this Section except to the extent that it provides less protection against liability than was permitted by the law in effect at the time the provision became effective.
Acts 2014, No. 328, §1, eff. Jan. 1, 2015; Acts 2016, No. 442, §1.