16-10a-904 - Advance of expenses for directors. - Utah Statutes

16-10a-904. Advance of expenses for directors.
(1) A corporation may pay for or reimburse the reasonable expenses incurred by adirector who is a party to a proceeding in advance of final disposition of the proceeding if:
(a) the director furnishes the corporation a written affirmation of his good faith belief thathe has met the applicable standard of conduct described in Section 16-10a-902;
(b) the director furnishes to the corporation a written undertaking, executed personally oron his behalf, to repay the advance if it is ultimately determined that he did not meet the standardof conduct; and
(c) a determination is made that the facts then known to those making the determinationwould not preclude indemnification under this part.
(2) The undertaking required by Subsection (1)(b) shall be an unlimited generalobligation of the director but need not be secured and may be accepted without reference tofinancial ability to make repayment.
(3) Determinations and authorizations of payments under this section shall be made inthe manner specified in Section 16-10a-906.

Amended by Chapter 378, 2010 General Session