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 who
votes for or assents to a violation of Subsection 16-6a-825(3) or Section 16-10a-842 is jointly and
severally liable to the corporation for any loss on the distribution.
(2) Part 9, Indemnification, of Title 16, Chapter 10a, Utah Revised Business Corporation
Act, applies to stock and mutual corporations, but no indemnification may be paid until 30 or
more days after sending a notice to the commissioner of the full details of the proposed
indemnification. The commissioner may bring an action in Third Judicial District Court for Salt
Lake County to have such indemnification enjoined. The court may enjoin the indemnification to
the extent it would render the insurer in a hazardous condition, or exacerbate an existing
financially hazardous condition.
Amended by Chapter 300, 2000 General Session
Download Code Section Zipped WordPerfect 31A05_041500.ZIP 2,167 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 28, 2009