North Carolina Proposed amendment to Bylaws regarding director and officer indemnification with copy of amendment

• Category: Corporations - Public - Indemnification
• State: Multi-State
• Control #: US-CC-17-113A
• Format: Word; Rich Text

Description

This sample form, a detailed Proposed Amendment to Bylaws Re: Director and Officer Indemnifiation w/Copy of Amendment, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. Title: North Carolina Proposed Amendment to Bylaws Regarding Director and Officer Indemnification for Enhanced Legal Protection Keywords: North Carolina, proposed amendment, bylaws, director and officer indemnification, legal protection, copy of amendment Introduction: The state of North Carolina has proposed an amendment to its bylaws regarding director and officer indemnification, aiming to enhance the legal protection provided to these individuals. This amendment seeks to address potential liabilities and risks faced by directors and officers while carrying out their duties. The proposed changes can be found below. North Carolina Proposed Amendment to Bylaws Regarding Director and Officer Indemnification: [Copy of Amendment] This proposed amendment contains provisions designed to safeguard directors and officers from personal liability arising from their actions, within the bounds of the law. It seeks to clarify and expand upon the existing indemnification provisions within the bylaws, providing further reassurances to those who serve in these roles. Key Provisions of the Proposed Amendment: 1. Broadening the Definition of Covered Parties: The amendment intends to expand the definition of individuals eligible for indemnification to encompass not only current directors and officers but also former directors, officers, and key employees. This extension aims to provide comprehensive protection to individuals who have served in influential positions within an organization. 2. Advancement of Expenses: The proposed amendment seeks to empower organizations to advance or reimburse reasonable expenses incurred promptly by directors, officers, and key employees in legal proceedings connected to their official roles. This provision aims to alleviate financial burdens and ensure that these individuals can navigate legal matters without personal financial strain. 3. Mandatory Indemnification: The amendment intends to establish certain circumstances under which mandatory indemnification must be provided. For instance, when an individual successfully defends themselves against any claim or legal action brought on because of their role as a director, officer, or key employee, they shall be entitled to indemnification by the organization. 4. Insurance Coverage: The proposed amendment encourages organizations to obtain and maintain appropriate insurance policies to cover potential indemnification obligations. Adequate insurance coverage will strengthen the legal protection offered to directors, officers, and key employees, thus mitigating potential personal financial risks. Conclusion: The North Carolina Proposed Amendment to Bylaws Regarding Director and Officer Indemnification represents an effort to enhance the legal protections available to these individuals. By broadening the definition of covered parties, providing advancements of expenses, mandating indemnification in certain circumstances, and promoting insurance coverage, this amendment aims to foster a secure environment for directors, officers, and key employees within organizations. [Copy of Amendment] Note: The content provided aims to offer a generalized description of a possible North Carolina proposed amendment to bylaws regarding director and officer indemnification. The actual amendment may differ, and it is crucial to refer to the official documentation for accurate and up-to-date information.

Title: North Carolina Proposed Amendment to Bylaws Regarding Director and Officer Indemnification for Enhanced Legal Protection Keywords: North Carolina, proposed amendment, bylaws, director and officer indemnification, legal protection, copy of amendment Introduction: The state of North Carolina has proposed an amendment to its bylaws regarding director and officer indemnification, aiming to enhance the legal protection provided to these individuals. This amendment seeks to address potential liabilities and risks faced by directors and officers while carrying out their duties. The proposed changes can be found below. North Carolina Proposed Amendment to Bylaws Regarding Director and Officer Indemnification: [Copy of Amendment] This proposed amendment contains provisions designed to safeguard directors and officers from personal liability arising from their actions, within the bounds of the law. It seeks to clarify and expand upon the existing indemnification provisions within the bylaws, providing further reassurances to those who serve in these roles. Key Provisions of the Proposed Amendment: 1. Broadening the Definition of Covered Parties: The amendment intends to expand the definition of individuals eligible for indemnification to encompass not only current directors and officers but also former directors, officers, and key employees. This extension aims to provide comprehensive protection to individuals who have served in influential positions within an organization. 2. Advancement of Expenses: The proposed amendment seeks to empower organizations to advance or reimburse reasonable expenses incurred promptly by directors, officers, and key employees in legal proceedings connected to their official roles. This provision aims to alleviate financial burdens and ensure that these individuals can navigate legal matters without personal financial strain. 3. Mandatory Indemnification: The amendment intends to establish certain circumstances under which mandatory indemnification must be provided. For instance, when an individual successfully defends themselves against any claim or legal action brought on because of their role as a director, officer, or key employee, they shall be entitled to indemnification by the organization. 4. Insurance Coverage: The proposed amendment encourages organizations to obtain and maintain appropriate insurance policies to cover potential indemnification obligations. Adequate insurance coverage will strengthen the legal protection offered to directors, officers, and key employees, thus mitigating potential personal financial risks. Conclusion: The North Carolina Proposed Amendment to Bylaws Regarding Director and Officer Indemnification represents an effort to enhance the legal protections available to these individuals. By broadening the definition of covered parties, providing advancements of expenses, mandating indemnification in certain circumstances, and promoting insurance coverage, this amendment aims to foster a secure environment for directors, officers, and key employees within organizations. [Copy of Amendment] Note: The content provided aims to offer a generalized description of a possible North Carolina proposed amendment to bylaws regarding director and officer indemnification. The actual amendment may differ, and it is crucial to refer to the official documentation for accurate and up-to-date information.