48-2c-1804 - Advancement of expenses. - Utah Statutes

48-2c-1804. Advancement of expenses.
(1) A company may pay for or reimburse the reasonable expenses incurred by a managerwho is a party to a proceeding in advance of final disposition of the proceeding if:
(a) the manager furnishes the company a written affirmation of his good faith belief thathe has met the applicable standard of conduct described in Section 48-2c-1802;
(b) the manager furnishes to the company 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) must be an unlimited generalobligation of the manager 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 in themanner specified in Section 48-2c-1806.

Enacted by Chapter 260, 2001 General Session