Illinois Indemnification Agreement between corporation and its directors regarding method for determining whether standards for indemnification have been met

• Category: Corporations - Public - Indemnification
• State: Multi-State
• Control #: US-CC-17-158
• Format: Word; Rich Text

Description

17-158 17-158 . . . Indemnification Agreement between corporation and its directors and/or officers including future directors and officers containing detailed provisions relating to method for determining whether standards for indemnification or reimbursement have been met and making corporation responsible for all costs of determining whether a person is entitled to indemnification or reimbursement regardless of whether person is ultimately found to be entitled to indemnification The Illinois Indemnification Agreement is a legal document that outlines the method for determining whether the standards for indemnification of a corporation and its directors have been met. This agreement serves to protect directors from personal liability in the event of legal proceedings related to their corporate duties. The agreement is governed by the Illinois Business Corporation Act. The key elements of the Illinois Indemnification Agreement include the definition of the standards for indemnification, the process for evaluating whether these standards have been met, and the responsibilities of the corporation and its directors in these situations. One of the main types of the Illinois Indemnification Agreement is the "Permissive Indemnification Agreement." This agreement allows the corporation to indemnify its directors for all expenses and liabilities incurred in connection with their directorship. However, it requires a determination that the director acted in good faith and believed that their actions were in the best interest of the corporation. Another type of agreement is the "Mandatory Indemnification Agreement." This agreement mandates the corporation to indemnify a director who has been successful in defending against legal proceedings based on their corporate actions. It ensures that directors are protected from personal financial burdens resulting from their service to the corporation. The Illinois Indemnification Agreement specifies the method for determining whether the standards for indemnification have been met, which typically involves a review by an independent legal counsel. This evaluation assesses whether the director acted in good faith, with reasonable belief, and in a manner that aligns with their fiduciary duties. If these criteria are met, the corporation is obligated to indemnify the director for their legal expenses, judgments, fines, and other costs incurred. The keywords relevant to this description are: Illinois Indemnification Agreement, corporation, directors, indemnification standards, method of determination, Permissive Indemnification Agreement, Mandatory Indemnification Agreement, legal proceedings, corporation's responsibilities, directors' responsibilities, protection, expenses, liabilities, and fiduciary duties.

The Illinois Indemnification Agreement is a legal document that outlines the method for determining whether the standards for indemnification of a corporation and its directors have been met. This agreement serves to protect directors from personal liability in the event of legal proceedings related to their corporate duties. The agreement is governed by the Illinois Business Corporation Act. The key elements of the Illinois Indemnification Agreement include the definition of the standards for indemnification, the process for evaluating whether these standards have been met, and the responsibilities of the corporation and its directors in these situations. One of the main types of the Illinois Indemnification Agreement is the "Permissive Indemnification Agreement." This agreement allows the corporation to indemnify its directors for all expenses and liabilities incurred in connection with their directorship. However, it requires a determination that the director acted in good faith and believed that their actions were in the best interest of the corporation. Another type of agreement is the "Mandatory Indemnification Agreement." This agreement mandates the corporation to indemnify a director who has been successful in defending against legal proceedings based on their corporate actions. It ensures that directors are protected from personal financial burdens resulting from their service to the corporation. The Illinois Indemnification Agreement specifies the method for determining whether the standards for indemnification have been met, which typically involves a review by an independent legal counsel. This evaluation assesses whether the director acted in good faith, with reasonable belief, and in a manner that aligns with their fiduciary duties. If these criteria are met, the corporation is obligated to indemnify the director for their legal expenses, judgments, fines, and other costs incurred. The keywords relevant to this description are: Illinois Indemnification Agreement, corporation, directors, indemnification standards, method of determination, Permissive Indemnification Agreement, Mandatory Indemnification Agreement, legal proceedings, corporation's responsibilities, directors' responsibilities, protection, expenses, liabilities, and fiduciary duties.