Kentucky Statutes 271B.8-530 – Advance for expenses
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(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 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
(b) A determination is made that the facts then known to those making the determination would not preclude indemnification under KRS § 271B.8-500 to KRS § 271B.8-580.
(2) The undertaking required by subsection (1)(a) of this section shall be an unlimited general obligation of the director but shall not be required to 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 KRS § 271B.8-550.
Effective:June 29, 2017
History: Amended 2017 Ky. Acts ch. 193, sec. 6, effective June 29, 2017. — Created 1988 Ky. Acts ch. 23, sec. 97, effective January 1, 1989.
(a) The director furnishes 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
Terms Used In Kentucky Statutes 271B.8-530
- 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.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- 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
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Proceeding: includes civil suit and criminal, administrative, and investigatory action. See Kentucky Statutes 271B.1-400
(b) A determination is made that the facts then known to those making the determination would not preclude indemnification under KRS § 271B.8-500 to KRS § 271B.8-580.
(2) The undertaking required by subsection (1)(a) of this section shall be an unlimited general obligation of the director but shall not be required to 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 KRS § 271B.8-550.
Effective:June 29, 2017
History: Amended 2017 Ky. Acts ch. 193, sec. 6, effective June 29, 2017. — Created 1988 Ky. Acts ch. 23, sec. 97, effective January 1, 1989.