South Dakota Codified Laws 47-1A-851.1. Prohibited indemnification–Exception
Current as of: 2023 | Check for updates
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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
Terms Used In South Dakota Codified Laws 47-1A-851.1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Proceeding: includes civil suit and criminal, administrative, and investigatory action. See South Dakota Codified Laws 47-1A-140
(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.
Source: SL 2005, ch 239, § 173.