This text of Iowa § 490.854 (Court-ordered indemnification and advance for expenses) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1. A person who is a party to a proceeding because the person is a director may apply
for indemnification or an advance for expenses to the court conducting the proceeding or to
another court of competent jurisdiction. After receipt of an application and after giving any
notice it considers necessary, the court shall do any of the following:
a. Order indemnification if the court determines that the director is entitled to mandatory
indemnification under section 490.852.
b. Order indemnification or advance for expenses if the court determines that the director
is entitled to indemnification or advance for expenses pursuant to a provision authorized by
section 490.858, subsection 1.
c.
(1)Order indemnification or advance for expenses if the court determines, in view of
all the relevant cir
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1. A person who is a party to a proceeding because the person is a director may apply
for indemnification or an advance for expenses to the court conducting the proceeding or to
another court of competent jurisdiction. After receipt of an application and after giving any
notice it considers necessary, the court shall do any of the following:
a. Order indemnification if the court determines that the director is entitled to mandatory
indemnification under section 490.852.
b. Order indemnification or advance for expenses if the court determines that the director
is entitled to indemnification or advance for expenses pursuant to a provision authorized by
section 490.858, subsection 1.
c. (1) Order indemnification or advance for expenses if the court determines, in view of
all the relevant circumstances, that it is fair and reasonable to do any of the following:
(a) Indemnify the director.
(b) Advance expenses to the director.
(2) The court shall order indemnification or advance for expenses, even if in the case of
subparagraph (1), subparagraph division (a) or (b), the director has not met the relevant
standard of conduct set forth in section 490.851, subsection 1, failed to comply with section
490.853 or was adjudged liable in a proceeding referred to in section 490.851, subsection
4, paragraph “a” or “b”. However, if the director was adjudged so liable the director’s
indemnification shall be limited to expenses incurred in connection with the proceeding.
2. If the court determines that the director is entitled to indemnification under subsection
1, paragraph “a”, or to indemnification or advance for expenses under subsection 1,
paragraph “b”, it shall also order the corporation to pay the director’s expenses incurred in
connection with obtaining court-ordered indemnification or advance for expenses. If the
court determines that the director is entitled to indemnification or advance for expenses
under subsection 1, paragraph “c”, it may also order the corporation to pay the director’s
expenses to obtain court-ordered indemnification or advance for expenses.