Kentucky Statutes 275.180 – Operating agreement provisions on personal liability and indemnification
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A written operating agreement may:
(1) Eliminate or limit the personal liability of a member or manager for monetary damages for breach of any duty provided for in KRS § 275.170; and
(2) Provide for indemnification of a member or manager for judgments, settlements, penalties, fines, or expenses incurred in a proceeding to which a person is a party because the person is or was a member or manager.
Effective: July 15, 1998
History: Amended 1998 Ky. Acts ch. 341, sec. 30, effective July 15, 1998. — Created
1994 Ky. Acts ch. 389, sec. 36, effective July 15, 1994.
(1) Eliminate or limit the personal liability of a member or manager for monetary damages for breach of any duty provided for in KRS § 275.170; and
Terms Used In Kentucky Statutes 275.180
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- 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
- Operating agreement: means any agreement, written or oral, among all of the members, as to the conduct of the business and affairs of a limited liability company. See Kentucky Statutes 275.015
- Person: means an individual, a partnership, a domestic or foreign limited liability company, a trust, an estate, an association, a corporation, or any other legal entity. See Kentucky Statutes 275.015
- Proceeding: means civil suit and criminal, administrative, and investigative action. See Kentucky Statutes 275.015
(2) Provide for indemnification of a member or manager for judgments, settlements, penalties, fines, or expenses incurred in a proceeding to which a person is a party because the person is or was a member or manager.
Effective: July 15, 1998
History: Amended 1998 Ky. Acts ch. 341, sec. 30, effective July 15, 1998. — Created
1994 Ky. Acts ch. 389, sec. 36, effective July 15, 1994.