Colorado Directors and Officers Indemnity Trust, also known as Colorado D&O Trust, is a specialized insurance product designed to provide financial protection to directors and officers serving in various organizations and companies within the state of Colorado. This trust offers coverage for legal costs, settlements, judgments, and other expenses that may arise from potential claims brought against directors and officers for alleged wrongful acts committed in their official capacity. The primary purpose of Colorado Directors and Officers Indemnity Trust is to safeguard directors and officers from personal liability, which can arise due to allegations of breaches of fiduciary duty, negligence, mismanagement, financial errors, or other professional offenses. By providing this coverage, the trust aims to attract skilled professionals to serve in leadership roles without the fear of personal financial loss. Colorado D&O Trust enables directors and officers to fulfill their duties with confidence and assurance, knowing that they have a safety net in case of any claims or lawsuits. The coverage offered by the trust includes legal defense costs, settlements, and judgments against directors and officers, as well as certain costs associated with governmental investigations or regulatory actions. This indemnity trust also helps protect the company's assets and reputation by providing funds for legal representation and compensatory measures. It ensures that organizations are able to attract and retain qualified individuals to serve on their boards and executive teams, thus promoting stability and effective governance. Different types of Colorado Directors and Officers Indemnity Trust may include: 1. Private Company D&O Trust: This trust is specifically designed for directors and officers serving in private corporations or companies, providing coverage tailored to their unique needs and risks. 2. Nonprofit D&O Trust: Nonprofit organizations face distinct challenges and potential legal actions. This trust offers protection to directors and officers serving in nonprofit entities, allowing them to carry out their duties diligently. 3. Public Company D&O Trust: Publicly traded companies have additional regulatory and legal obligations. This trust provides coverage to directors and officers serving these companies, shielding them from potential claims arising from their actions or decisions. By offering comprehensive liability protection, Colorado Directors and Officers Indemnity Trust ensures that directors and officers can focus on guiding their organizations effectively, with reduced personal risk. It proves to be a valuable asset in the overall risk management strategy for various types of organizations, encouraging accountability, responsible decision-making, and professional excellence.
Colorado Directors and Officers Indemnity Trust
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Blinder, Robinson & Co., the Colorado Supreme Court defined an indemnity agreement as ?[a]n agreement by one person to hold another person harmless from such loss or damage as may be specified in the agreement.?19 If ?indemnify? and ?hold harmless? are synonymous, the term ?hold harmless? is unnecessary in an indemnity ...
Insurance ? The indemnification agreement typically will require that the company provide D&O liability insurance that protects the indemnitee to the same extent as the most favorably insured of the company's and its affiliates' current directors and officers.
Indemnification, also referred to as indemnity, is an undertaking by one party (the indemnifying party) to compensate the other party (the indemnified party) for certain costs and expenses, typically stemming from third-party claims.
§ 13-21-111.5. The Colorado anti-indemnity law limits a defendant's liability to ?the degree or percentage of the negligence or fault attributable? to the defendant.
A company may, however, lend money to a director to fund the director's defence costs. Frequently, an indemnity will include a provision under which the company agrees to lend the director the amounts necessary to fund the director's defence costs.
Section 145(c)(1) provides that to the extent a director has been successful on the merits or otherwise in defense of any action, suit, or proceeding referenced in Section 145(a) or Section 145(b), the director shall be indemnified against expenses actually and reasonably incurred by the director in connection ...
Indemnification Agreement to secure against loss or damage; to give security for the reimbursement of a person in case of an anticipated loss falling upon him. Also to make good; to compensate; to make reimbursement to one of a loss already incurred by him.
Indemnification refers to the right to have a company reimburse current or former directors or officers for all losses, including legal fees, incurred in connection with litigation arising from actions taken in service to the company or at the company's direction.