1741 - Third-party actions. - Pennsylvania Statutes

SUBCHAPTER D INDEMNIFICATION Sec. 1741. Third-party actions. 1742. Derivative and corporate actions. 1743. Mandatory indemnification. 1744. Procedure for effecting indemnification. 1745. Advancing expenses. 1746. Supplementary coverage. 1747. Power to purchase insurance. 1748. Application to surviving or new corporations. 1749. Application to employee benefit plans. 1750. Duration and extent of coverage. Enactment. Subchapter D was added as Subchapter C December 21, 1988, P.L.1444, No.177, effective October 1, 1989, and was relettered to Subchapter D December 19, 1990, P.L.834, No.198, effective immediately. Cross References. Subchapter D is referred to in sections 522, 9506 of this title; section 712 of Title 17 (Credit Unions). § 1741. Third-party actions. Unless otherwise restricted in its bylaws, a business corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation), by reason of the fact that he is or was a representative of the corporation, or is or was serving at the request of the corporation as a representative of another domestic or foreign corporation for profit or not-for-profit, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action or proceeding if he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action or proceeding by judgment, order, settlement or conviction or upon a plea of nolo contendere or its equivalent shall not of itself create a presumption that the person did not act in good faith and in a manner that he reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal proceeding, had reasonable cause to believe that his conduct was unlawful. Cross References. Section 1741 is referred to in sections 1743, 1744 of this title.