Sec. 12. (a) A corporation may not indemnify a director under section 8 of this chapter unless authorized in the specific case after a determination has been made that indemnification of the director is permissible in the circumstances because the director has met the standard of conduct set forth in section 8 of this chapter.
(b) The determination shall be made by any one (1) of the following procedures:
(1) By the board of directors by majority vote of a quorum consisting of directors not at the time parties to the proceeding.
(2) If a quorum cannot be obtained under subdivision (1), by majority vote of a committee duly designated by the board of directors (in which designation directors who are parties may participate), consisting solely of two (2) or more directors not at the time parties to the proceeding.
(3) By special legal counsel:
(A) selected by the board of directors or its committee in the manner prescribed in subdivision (1) or (2); or
(B) if a quorum of the board of directors cannot be obtained under subdivision (1) and a committee cannot be designated under subdivision (2), selected by majority vote of the full board of directors (in which selection directors who are parties may participate).
(c) Authorization of indemnification and evaluation as to reasonableness of expenses shall be made in the same manner as the determination that indemnification is permissible, except that if the determination is made by special legal counsel, authorization of indemnification and evaluation as to reasonableness of expenses shall be made by those entitled under subsection (b)(3) to select counsel.
As added by P.L.266-1987, SEC.6.
Structure Indiana Code
Article 1. Department of Insurance
Chapter 7.5. Indemnification of Directors
27-1-7.5-1. "Corporation" Defined
27-1-7.5-2. "Director" Defined
27-1-7.5-3. "Expenses" Defined
27-1-7.5-4. "Liability" Defined
27-1-7.5-5. "Official Capacity" Defined
27-1-7.5-7. "Proceeding" Defined
27-1-7.5-8. Conditional Indemnification of Director Against Liability
27-1-7.5-9. Mandatory Indemnification of Director for Expenses Incurred in Successful Defense
27-1-7.5-10. Advancement of Expenses Before Final Disposition; Conditions
27-1-7.5-11. Court Ordered Indemnification; Determination
27-1-7.5-13. Indemnification of Corporate Employees Other Than Directors
27-1-7.5-14. Liability Insurance Purchased and Maintained by Corporation