Indiana § 27-1-7.5-12 Determination of permissible indemnification; authorization of
indemnification and evaluation as to reasonableness of expenses

Indiana Statutes

§ 27-1-7.5-12 — Determination of permissible indemnification; authorization of indemnification and evaluation as to reasonableness of expenses

Indiana § 27-1-7.5-12

Title 27INSURANCE

Art. 1DEPARTMENT OF INSURANCE

Ch. 7.5Indemnification of Directors

This text of Indiana § 27-1-7.5-12 (Determination of permissible indemnification; authorization of indemnification and evaluation as to reasonableness of expenses) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 27-1-7.5-12 (2026).

Text

(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 th

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(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.