16-6a-903 - Mandatory indemnification of directors.
16-6a-903. Mandatory indemnification of directors.
(1) Unless limited by its bylaws, a nonprofit corporation shall indemnify a directordescribed in Subsection (2) against reasonable expenses incurred by the director in connectionwith the proceeding or claim with respect to which the director has been successful.
(2) Subsection (1) applies to a director who was successful, on the merits or otherwise, inthe defense of:
(a) any proceeding to which the director was a party because the director is or was adirector of the nonprofit corporation; or
(b) any claim, issue, or matter in the proceeding, to which the director was a partybecause the director is or was a director of the nonprofit corporation.
Amended by Chapter 228, 2006 General Session