31A-5-415 - Officers', directors', and employees' liability and indemnification.
31A-5-415. Officers', directors', and employees' liability and indemnification.
(1) Section 16-10a-841 applies to the liabilities of directors of a stock corporation. Subsection 16-6a-825(3) applies to loans to trustees and officers of a mutual. A director whovotes for or assents to a violation of Subsection 16-6a-825(3) or Section 16-10a-842 is jointly andseverally liable to the corporation for any loss on the distribution.
(2) Part 9, Indemnification, of Title 16, Chapter 10a, Utah Revised Business CorporationAct, applies to stock and mutual corporations, but no indemnification may be paid until 30 ormore days after sending a notice to the commissioner of the full details of the proposedindemnification. The commissioner may bring an action in Third Judicial District Court for SaltLake County to have such indemnification enjoined. The court may enjoin the indemnification tothe extent it would render the insurer in a hazardous condition, or exacerbate an existingfinancially hazardous condition.
Amended by Chapter 300, 2000 General Session