§ 1735. Personal liability of officers.

327 words·~1 min read·/pa/title-15/chapter-17/1735

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- If a bylaw adopted by the shareholders of a business corporation so provides, an officer shall not be personally liable, as such, for monetary damages for any action taken unless:

(1)the officer has breached or failed to perform the duties of an officer under this subchapter; and

(2)the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness.

(b)Exceptions.-- Subsection

(a)shall not apply to:

(1)the responsibility or liability of an officer pursuant to any criminal statute; or

(2)the liability of an officer for the payment of taxes pursuant to Federal, State or local law.

(c)Application.-- An amendment or repeal of a provision described in subsection

(a)does not affect its application with respect to an act by an officer occurring before the amendment or repeal unless the provision in effect at the time of the act explicitly authorizes its amendment or repeal after an act has occurred.

(d)Certain provisions of articles ineffective.-- This section may not be relaxed by any provision of the articles.

(e)Cross reference.-- See 42 Pa.C.S. § 8332.5 (relating to corporate representatives).

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(Nov. 3, 2022, P.L.1791, No.122, eff. 60 days)

2022 Amendment. Act 122 added section 1735.

Cross References. Section 1735 is referred to in section 1504 of this title.

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SUBCHAPTER D

INDEMNIFICATION

Sec.

1741. Third-party actions.

1742. Derivative and corporate actions.

1743. Mandatory indemnification.

1744. Procedure for effecting indemnification.

1745. Advancing expenses.

1746. Supplementary coverage.

1747. Power to purchase insurance.

1748. Application to surviving or new corporations.

1749. Application to employee benefit plans.

1750. Duration and extent of coverage.

Enactment. Subchapter D was added as Subchapter C December 21, 1988, P.L.1444, No.177, effective October 1, 1989, and was relettered to Subchapter D December 19, 1990, P.L.834, No.198, effective immediately.

Cross References. Subchapter D is referred to in sections 522, 1783, 9506 of this title; section 712 of Title 17 (Credit Unions).

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