If a corporation indemnifies or advances expenses to a director under sections 10-851 through 10-854, the corporation shall report the indemnification or advance in writing to the shareholders with or before the annual financial statements required under section 10-1620. Failure to report under this section does not invalidate otherwise valid indemnification. This section does not apply to a corporation whose shares are listed on a national securities exchange or are regularly traded in a market maintained by one or more members of a national or affiliated securities association.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Arizona Laws 10-1621

  • 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.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Shares: means the units into which the proprietary interests in a corporation are divided. See Arizona Laws 10-140
  • Writing: includes printing. See Arizona Laws 1-215