Connecticut Indemnification of Corporate Director

• Category: Corporations - Officers and Employees
• State: Multi-State
• Control #: US-13374BG
• Format: Word; Rich Text

Description

Indemnification is where the company reimburses a director or officer for the attorneys' fees and costs, and potentially judgments, incurred in connection with claims arising out of the director's or officer's service to the company. Connecticut Indemnification of Corporate Director is a legal provision that aims to protect corporate directors from personal liability for acts performed in their official capacity. As a state-specific law, it outlines the rights, responsibilities, and legal recourse available to directors serving in Connecticut-based corporations. Under Connecticut General Statutes Section 33-1098, corporations incorporated in Connecticut have the authority to indemnify directors against expenses (including attorneys' fees), judgments, fines, and settlement amounts incurred during legal proceedings arising from their directorial duties. The purpose of indemnification is to ensure directors are not deterred from taking appropriate actions in the best interests of the corporation out of fear of potential personal liability. The Connecticut Indemnification of Corporate Director includes important keywords such as: 1. Indemnification: The provision offers protection against financial losses. 2. Corporate Director: This refers to individuals holding positions of directorship within a corporation, entrusted with making important business decisions. 3. Liability: Refers to legal responsibility for one's actions or omissions. 4. Directorial duties: The range of responsibilities and actions entrusted to corporate directors. 5. Statutes: The legislative enactments that govern the legal framework for indemnification provisions in Connecticut. 6. Expenses: The costs incurred during legal proceedings, such as attorney fees and court expenses. 7. Judgments: Legal decisions or rulings made by a court or tribunal. 8. Fines: Monetary penalties imposed by regulatory authorities or courts. 9. Settlements: Resolutions reached by parties involved in a legal dispute without proceeding to trial. Different types of Connecticut Indemnification of Corporate Director can be classified based on the extent of indemnification provided, such as: 1. Mandatory Indemnification: The corporation must indemnify directors to the fullest extent permitted by law, provided they meet specific eligibility criteria. 2. Permissive Indemnification: The corporation has the discretionary power to indemnify directors in certain circumstances, but it is not obligatory. 3. Advancement of Expenses: This clause allows directors to request the corporation to advance funds to cover legal expenses before the final outcome of legal proceedings. 4. Limitations or Exceptions: Some indemnification provisions may impose limits or exceptions, such as excluding indemnification for willful misconduct or acts not in good faith. In conclusion, Connecticut Indemnification of Corporate Director is a legal mechanism that protects corporate directors from personal liability by providing financial support in the form of indemnification for expenses, judgments, fines, and settlements incurred during legal proceedings arising from their directorial duties. Understanding the intricacies of this provision is vital for directors, ensuring they can fulfill their roles without fear of personal liability.

Connecticut Indemnification of Corporate Director is a legal provision that aims to protect corporate directors from personal liability for acts performed in their official capacity. As a state-specific law, it outlines the rights, responsibilities, and legal recourse available to directors serving in Connecticut-based corporations. Under Connecticut General Statutes Section 33-1098, corporations incorporated in Connecticut have the authority to indemnify directors against expenses (including attorneys' fees), judgments, fines, and settlement amounts incurred during legal proceedings arising from their directorial duties. The purpose of indemnification is to ensure directors are not deterred from taking appropriate actions in the best interests of the corporation out of fear of potential personal liability. The Connecticut Indemnification of Corporate Director includes important keywords such as: 1. Indemnification: The provision offers protection against financial losses. 2. Corporate Director: This refers to individuals holding positions of directorship within a corporation, entrusted with making important business decisions. 3. Liability: Refers to legal responsibility for one's actions or omissions. 4. Directorial duties: The range of responsibilities and actions entrusted to corporate directors. 5. Statutes: The legislative enactments that govern the legal framework for indemnification provisions in Connecticut. 6. Expenses: The costs incurred during legal proceedings, such as attorney fees and court expenses. 7. Judgments: Legal decisions or rulings made by a court or tribunal. 8. Fines: Monetary penalties imposed by regulatory authorities or courts. 9. Settlements: Resolutions reached by parties involved in a legal dispute without proceeding to trial. Different types of Connecticut Indemnification of Corporate Director can be classified based on the extent of indemnification provided, such as: 1. Mandatory Indemnification: The corporation must indemnify directors to the fullest extent permitted by law, provided they meet specific eligibility criteria. 2. Permissive Indemnification: The corporation has the discretionary power to indemnify directors in certain circumstances, but it is not obligatory. 3. Advancement of Expenses: This clause allows directors to request the corporation to advance funds to cover legal expenses before the final outcome of legal proceedings. 4. Limitations or Exceptions: Some indemnification provisions may impose limits or exceptions, such as excluding indemnification for willful misconduct or acts not in good faith. In conclusion, Connecticut Indemnification of Corporate Director is a legal mechanism that protects corporate directors from personal liability by providing financial support in the form of indemnification for expenses, judgments, fines, and settlements incurred during legal proceedings arising from their directorial duties. Understanding the intricacies of this provision is vital for directors, ensuring they can fulfill their roles without fear of personal liability.