47-1A-851.1. Prohibited indemnification--Exception.
102 words·~1 min read·
/sd/title-47/chapter-47-1/47-1a-851-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Unless ordered by a court under subdivision 47-1A-854(3), a corporation may not indemnify a director:
(1)In connection with a proceeding by or in the right of the corporation, except for reasonable expenses incurred in connection with the proceeding if it is determined that the director has met the relevant standard of conduct under § 47-1A-851 ; or
(2)In connection with any proceeding with respect to conduct for which the director was adjudged liable on the basis that the director received a financial benefit to which the director was not entitled, whether or not involving action in the director's official capacity.