Vermont Statutes Title 11 Sec. 909
Terms Used In Vermont Statutes Title 11 Sec. 909
- Articles of organization: means the articles of organization of a mutual benefit enterprise required by section 302 of this title. See
- Board of directors: means the board of directors of a mutual benefit enterprise. See
- Bylaws: means the bylaws of a mutual benefit enterprise. See
- Contract: A legal written agreement that becomes binding when signed.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Director: means a director of a mutual benefit enterprise. See
- 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
§ 909. Application of article
(a) A provision treating an enterprise’s indemnification of or advance for expenses to directors that is contained in its articles of organization, bylaws, a resolution of its members or board of directors, or in a contract or otherwise is valid only if and to the extent the provision is consistent with this article. If articles of organization limit indemnification or advance for expenses, indemnification and advance for expenses are valid only to the extent consistent with the articles.
(b) This article does not limit an enterprise’s power to pay or reimburse expenses incurred by a director in connection with the director’s appearance as a witness in a proceeding at a time when the director has not been made a named defendant or respondent to the proceeding. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)