16-10a-904. Advance of expenses for directors.

183 words·~1 min read·/ut/title-16/chapter-10a/16-10a-904·

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

(1)A corporation may pay for or reimburse the reasonable expenses incurred by a director who is a party to a proceeding in advance of final disposition of the proceeding if:

(a)the director furnishes the corporation a written affirmation of his good faith belief that he has met the applicable standard of conduct described in Section 16-10a-902 ;

(b)the director furnishes to the corporation a written undertaking, executed personally or on his behalf, to repay the advance if it is ultimately determined that he did not meet the standard of conduct; and

(c)a determination is made that the facts then known to those making the determination would not preclude indemnification under this part.

(2)The undertaking required by Subsection (1)(b) shall be an unlimited general obligation of the director but need not be secured and may be accepted without reference to financial ability to make repayment.

(3)Determinations and authorizations of payments under this section shall be made in the manner specified in Section 16-10a-906 .

Amended by Chapter 378 , 2010 General Session