Nebraska 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. Nebraska Indemnification of Corporate Director refers to the legal provisions available in the state of Nebraska that protect corporate directors from personal liability in certain situations. This indemnification assures directors that they will not bear the financial burden resulting from legal claims or related expenses arising from their corporate responsibilities. The purpose of Nebraska Indemnification of Corporate Director is to encourage individuals to serve as directors in corporations, regardless of the potential risks involved. When directors are confident they will be protected from personal liability, they can make informed decisions beneficial to the corporation without the fear of facing personal financial loss. Key Components of Nebraska Indemnification of Corporate Director: 1. Statutory Protection: Nebraska state law, specifically § 21-20,132 of the Nebraska Revised Statutes, provides statutory indemnification protection for corporate directors. This provision permits corporations to indemnify directors for expenses, including attorneys' fees, judgments, fines, and settlement amounts incurred in legal proceedings relating to their directorial duties. 2. Reimbursement of Expenses: Under Nebraska's indemnification provisions, directors are entitled to have their reasonable expenses reimbursed by the corporation. This includes legal fees, travel expenses, and other costs incurred in defending against a legal action or investigation related to their role as directors. 3. Advancement of Expenses: In cases of legal proceedings against a director, Nebraska law allows the corporation to advance the funds required for legal defense and related expenses before the resolution of the case. This provision ensures that directors have access to necessary resources to defend themselves promptly. 4. Limitations on Indemnification: Nebraska's indemnification laws do impose some limitations. For instance, an indemnification claim may not be allowed if a court determines that the director acted in bad faith, engaged in willful misconduct, or knowingly violated a law. The statute also prohibits indemnification for any amounts paid in settlement without the corporation's approval. Types of Nebraska Indemnification of Corporate Directors: There are two primary types of indemnification available for corporate directors in Nebraska: 1. Indemnification in Successful Defense: If a director successfully defends against legal claims or investigations related to corporate responsibilities, they are entitled to indemnification for all reasonable expenses incurred during the defense. 2. Indemnification in Failed Defense: If a director is found liable or settles a legal claim, Nebraska law allows for indemnification to cover expenses reasonably incurred in defense, as long as the director acted in good faith and with a reasonable belief that their actions were in the best interests of the corporation. In summary, Nebraska Indemnification of Corporate Director is a legal protection mechanism aimed at safeguarding directors from personal liability when performing their duties. The provisions enable corporations to cover the costs associated with legal proceedings and related expenses, thereby encouraging qualified individuals to assume directorial roles in Nebraska.

Nebraska Indemnification of Corporate Director refers to the legal provisions available in the state of Nebraska that protect corporate directors from personal liability in certain situations. This indemnification assures directors that they will not bear the financial burden resulting from legal claims or related expenses arising from their corporate responsibilities. The purpose of Nebraska Indemnification of Corporate Director is to encourage individuals to serve as directors in corporations, regardless of the potential risks involved. When directors are confident they will be protected from personal liability, they can make informed decisions beneficial to the corporation without the fear of facing personal financial loss. Key Components of Nebraska Indemnification of Corporate Director: 1. Statutory Protection: Nebraska state law, specifically § 21-20,132 of the Nebraska Revised Statutes, provides statutory indemnification protection for corporate directors. This provision permits corporations to indemnify directors for expenses, including attorneys' fees, judgments, fines, and settlement amounts incurred in legal proceedings relating to their directorial duties. 2. Reimbursement of Expenses: Under Nebraska's indemnification provisions, directors are entitled to have their reasonable expenses reimbursed by the corporation. This includes legal fees, travel expenses, and other costs incurred in defending against a legal action or investigation related to their role as directors. 3. Advancement of Expenses: In cases of legal proceedings against a director, Nebraska law allows the corporation to advance the funds required for legal defense and related expenses before the resolution of the case. This provision ensures that directors have access to necessary resources to defend themselves promptly. 4. Limitations on Indemnification: Nebraska's indemnification laws do impose some limitations. For instance, an indemnification claim may not be allowed if a court determines that the director acted in bad faith, engaged in willful misconduct, or knowingly violated a law. The statute also prohibits indemnification for any amounts paid in settlement without the corporation's approval. Types of Nebraska Indemnification of Corporate Directors: There are two primary types of indemnification available for corporate directors in Nebraska: 1. Indemnification in Successful Defense: If a director successfully defends against legal claims or investigations related to corporate responsibilities, they are entitled to indemnification for all reasonable expenses incurred during the defense. 2. Indemnification in Failed Defense: If a director is found liable or settles a legal claim, Nebraska law allows for indemnification to cover expenses reasonably incurred in defense, as long as the director acted in good faith and with a reasonable belief that their actions were in the best interests of the corporation. In summary, Nebraska Indemnification of Corporate Director is a legal protection mechanism aimed at safeguarding directors from personal liability when performing their duties. The provisions enable corporations to cover the costs associated with legal proceedings and related expenses, thereby encouraging qualified individuals to assume directorial roles in Nebraska.