Sec. 33-771. Permissible indemnification.
Sec. 33-771. Permissible indemnification. (a) Except as otherwise provided in
this section, a corporation may indemnify an individual who is a party to a proceeding
because he is a director against liability incurred in the proceeding if: (1) (A) He conducted himself in good faith; (B) he reasonably believed (i) in the case of conduct in
his official capacity, that his conduct was in the best interests of the corporation; and
(ii) in all other cases, that his conduct was at least not opposed to the best interests of
the corporation; and (C) in the case of any criminal proceeding, he had no reasonable
cause to believe his conduct was unlawful; or (2) he engaged in conduct for which
broader indemnification has been made permissible or obligatory under a provision of
the certificate of incorporation as authorized by subdivision (5) of subsection (b) of
section 33-636.
(b) A director's conduct with respect to an employee benefit plan for a purpose he
reasonably believed to be in the interests of the participants in and beneficiaries of the
plan is conduct that satisfies the requirement of subparagraph (ii) of subdivision (1) of
subsection (a) of this section.
(c) The termination of a proceeding by judgment, order, settlement or conviction
or upon a plea of nolo contendere or its equivalent is not, of itself, determinative that
the director did not meet the relevant standard of conduct described in this section.
(d) Unless ordered by a court under section 33-774, a corporation may not indemnify
a director under this section: (1) In connection with a proceeding by or in the right of the
corporation except for reasonable expenses incurred in connection with the proceeding if
it is determined that the director has met the relevant standard of conduct under subsection (a) of this section; or (2) in connection with any proceeding with respect to conduct
for which he was adjudged liable on the basis that he received a financial benefit to
which he was not entitled, whether or not involving action in his official capacity.
(e) Notwithstanding any provision of this section to the contrary, a corporation
which was incorporated under the laws of this state, whether under chapter 599 of the
general statutes, revised to January 1, 1995, or any other general law or special act,
prior to January 1, 1997, shall, except to the extent that the certificate of incorporation
expressly provides otherwise, indemnify under sections 33-770 to 33-779, inclusive,
except subdivision (2) of subsection (a) of this section, a director to the same extent the
corporation is permitted to provide the same to a director pursuant to subdivision (1) of
subsection (a) and subsections (b), (c) and (d) of this section as limited by the provisions
of section 33-775.
(P.A. 94-186, S. 108, 215; P.A. 96-271, S. 77, 254; P.A. 97-246, S. 13, 99.)
History: P.A. 94-186 effective January 1, 1997; P.A. 96-271 amended Subsec. (f) to replace "articles" of incorporation
with "certificate" of incorporation and "January 1, 1996" with "January 1, 1997", effective January 1, 1997; P.A. 97-246
substantially revised section, including amending Subsec. (a) to add new Subdiv. (2) re indemnification pursuant to the
certificate of incorporation, revising Subsec. (d) re when a corporation may not indemnify a director, deleting former
Subsec. (e) re limitation on indemnification in connection with proceeding by or in the right of the corporation, which
provision was incorporated into Subsec. (d)(1), and redesignating former Subsec. (f) as Subsec. (e) and rephrasing said
Subsec., effective June 27, 1997.