§ 1744. Procedure for effecting indemnification.

145 words·~1 min read·/pa/title-15/chapter-17/1744

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

Unless ordered by a court, any indemnification under section 1741 (relating to third-party actions) or 1742 (relating to derivative and corporate actions) shall be made by the business corporation only as authorized in the specific case upon a determination that indemnification of the representative is proper in the circumstances because he has met the applicable standard of conduct set forth in those sections. The determination shall be made:

(1)by the board of directors by a majority vote of a quorum consisting of directors who were not parties to the action or proceeding;

(2)if such a quorum is not obtainable or if obtainable and a majority vote of a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or

(3)by the shareholders.

15c1744v

(Dec. 18, 1992, P.L.1333, No.169, eff. 60 days)

15c1745s