A corporation may purchase and maintain insurance on behalf of an individual who is a director or officer of the corporation, or who, while a director or officer of the corporation, serves at the corporation’s request as a director, officer, partner, trustee, employee, or agent of another domestic or foreign corporation, partnership, joint venture, trust, employee benefit plan, or other entity, against liability asserted against or incurred by the individual in that capacity or arising from the individual’s status as a director or officer, whether or not the corporation would have power to indemnify or advance expenses to the director of officer against the same liability under §§ 47-1A-850 to 47-1A-859, inclusive.

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Terms Used In South Dakota Codified Laws 47-1A-857

  • 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.
  • Employee: includes any officer but not a director. See South Dakota Codified Laws 47-1A-140
  • Entity: includes domestic and foreign business corporation. See South Dakota Codified Laws 47-1A-140
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Trustee: A person or institution holding and administering property in trust.

Source: SL 2005, ch 239, § 180.