Montana 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. Montana Indemnification of Corporate Director is a legal provision that safeguards corporate directors from financial liability resulting from their official duties. This mechanism provides protection to allow directors to make informed decisions without the fear of personal financial loss. In Montana, there are different types of indemnification available to corporate directors, namely statutory indemnification and contractual indemnification. Statutory indemnification refers to the protection provided by state laws, specifically Montana Code Annotated, Title 35, Chapter 2, Part 10. Under this provision, a corporate director is entitled to indemnification for expenses and liabilities incurred while acting in their official capacity, unless they are determined to have breached their fiduciary duties, engaged in self-dealing or willful misconduct. Contractual indemnification, on the other hand, is an agreement between the corporation and its directors that expands the scope of indemnification beyond what is statutorily required. This type of indemnification can offer broader protection to directors, provided that it is properly written and compliant with state laws. Depending on the specific contractual agreement, a director may be indemnified for expenses such as legal fees, settlements, judgements, and other costs incurred as a result of their corporate duties. The purpose of Montana Indemnification of Corporate Director is to attract qualified individuals to serve as corporate directors by mitigating their personal financial risks. This provision encourages competent individuals to lead and contribute to the success of corporations, thereby benefitting the overall economy of Montana. Keywords: Montana Indemnification of Corporate Director, legal provision, financial liability, official duties, protection, informed decisions, personal financial loss, statutory indemnification, contractual indemnification, Montana Code Annotated, Title 35, Chapter 2, Part 10, expenses, liabilities, fiduciary duties, self-dealing, willful misconduct, contractual agreement, broader protection, compliant, legal fees, settlements, judgements, costs, purpose, attract qualified individuals, corporate directors, personal financial risks, competent individuals, success, economy.

Montana Indemnification of Corporate Director is a legal provision that safeguards corporate directors from financial liability resulting from their official duties. This mechanism provides protection to allow directors to make informed decisions without the fear of personal financial loss. In Montana, there are different types of indemnification available to corporate directors, namely statutory indemnification and contractual indemnification. Statutory indemnification refers to the protection provided by state laws, specifically Montana Code Annotated, Title 35, Chapter 2, Part 10. Under this provision, a corporate director is entitled to indemnification for expenses and liabilities incurred while acting in their official capacity, unless they are determined to have breached their fiduciary duties, engaged in self-dealing or willful misconduct. Contractual indemnification, on the other hand, is an agreement between the corporation and its directors that expands the scope of indemnification beyond what is statutorily required. This type of indemnification can offer broader protection to directors, provided that it is properly written and compliant with state laws. Depending on the specific contractual agreement, a director may be indemnified for expenses such as legal fees, settlements, judgements, and other costs incurred as a result of their corporate duties. The purpose of Montana Indemnification of Corporate Director is to attract qualified individuals to serve as corporate directors by mitigating their personal financial risks. This provision encourages competent individuals to lead and contribute to the success of corporations, thereby benefitting the overall economy of Montana. Keywords: Montana Indemnification of Corporate Director, legal provision, financial liability, official duties, protection, informed decisions, personal financial loss, statutory indemnification, contractual indemnification, Montana Code Annotated, Title 35, Chapter 2, Part 10, expenses, liabilities, fiduciary duties, self-dealing, willful misconduct, contractual agreement, broader protection, compliant, legal fees, settlements, judgements, costs, purpose, attract qualified individuals, corporate directors, personal financial risks, competent individuals, success, economy.