47-1A-856. Indemnification of officers.
A corporation may indemnify and advance expenses under §§47-1A-850 to 47-1A-859, inclusive, to an officer of the corporation who is a party to a proceeding by reason of being an officer of the corporation:
(1)To the same extent as a director; and
(2)If the officer is not also a director, to such further extent as may be provided by the articles of incorporation, the bylaws, a resolution of the board of directors, or contract except for:
(a)Liability in connection with a proceeding by or in the right of the corporation other than for reasonable expenses incurred in connection with the proceeding; or
(b)Liability arising out of conduct that constitutes:
(i)Receipt of a financial benefit to which the officer is not entitled;
(ii)An intentional infliction of harm on the corporation or the shareholders; or
(iii)An intentional violation of criminal law.
The provisions of subdivision (2) apply to an officer who is also a director if the basis on which the officer is made a party to the proceeding is an act or omission solely as an officer.
An officer of a corporation who is not also a director is entitled to mandatory indemnification under §47-1A-852, and may apply to a court under §47-1A-854 for indemnification or an advance for expenses, in each case to the same extent to which a director may be entitled to indemnification or advance for expenses under those provisions.
Source: SL 2005, ch 239, §179.