1. For purposes of this section:
a. "Corporation" includes a domestic or foreign corporation that was the
predecessor of the corporation referred to in this section in a merger or other
transaction in which the predecessor's existence ceased upon consummation of
the transaction.
b. "Official capacity" means:
(1) With respect to a director, the position of director in a corporation;
(2) With respect to a person other than a director, the elective or appointive
office or position held by an officer, member of a committee of the board, or
the employment relationship undertaken by an employee of the corporation;
and
(3) With respect to a director, officer, or employee of the corporation who, while
a director, officer, or employee of the corporation, is or was serving at the
request of the corporation or whose duties in that position involve or
involved service as a director, governor, officer, manager, partner, trustee,
employee, or agent of another organization or employee benefit plan, the
position of that person as a director, governor, officer, manager, partner,
trustee, employee, or agent, as the case may be, of the other organization
or employee benefit plan.
c. "Proceeding" means a threatened, pending, or completed civil, criminal,
administrative, arbitration, or investigative proceeding, including a proceeding by
or in the right of the corporation.
d. "Special legal counsel" means counsel who has not in the preceding five years:
(1) Represented the corporation or a related organization in any capacity other
than special legal counsel; or
(2) Represented a director, officer, member of a committee of the board, or
employee whose indemnification is in issue.
2. Subject to subsection 5, a corporation shall indemnify a person made or threatened to
be made a party to a proceeding by reason of the former or present official capacity of
the person against judgments, penalties, fines including excise taxes assessed against
the person with respect to an employee benefit plan, settlements, and reasonable
expenses, including attorney's fees and disbursements, incurred by the person in
connection with the proceeding, if, with respect to the acts or omissions of the person
complained of in the proceeding, the person:
a. Has not been indemnified by another organization or employee benefit plan for
the same judgments, penalties, fines including excise taxes assessed against the
person with respect to an employee benefit plan, settlements, and reasonable
expenses, including attorney's fees and disbursements, incurred by the person in
connection with the proceeding with respect to the same acts or omissions;
b. Acted in good faith;
c. Received no improper personal benefit and section 10-33-45, if applicable, has
been satisfied;
d. In the case of a criminal proceeding, had no reasonable cause to believe the
conduct was unlawful; and
e. In the case of acts or omissions occurring in the official capacity described in
paragraph 1 or 2 of subdivision b of subsection 1, reasonably believed that the
conduct was in the best interests of the corporation, or in the case of acts or
omissions occurring in the official capacity described in paragraph 3 of
subdivision b of subsection 1, reasonably believed that the conduct was not
opposed to the best interests of the corporation. If the person's acts or omissions
complained of in the proceeding relate to conduct as a director, governor, officer,
manager, trustee, employee, or agent of an employee benefit plan, the conduct is
not considered to be opposed to the best interests of the corporation if the person
reasonably believed that the conduct was in the best interests of the participants
or beneficiaries of the employee benefit plan.
3. The termination of a proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo contendere or its equivalent does not, of itself, establish that the person
did not meet the criteria set forth in subsection 2.
4. Subject to subsection 5, if a person is made or threatened to be made a party to a
proceeding, the person is entitled, upon written request to the corporation, to payment
or reimbursement by the corporation of reasonable expenses, including attorney's fees
and disbursements, incurred by the person in advance of the final disposition of the
proceeding:
a. Upon receipt by the corporation of a written affirmation by the person of a
good-faith belief that the criteria for indemnification set forth in subsection 2 have
been satisfied and a written undertaking by the person to repay all amounts so
paid or reimbursed by the corporation, if it is ultimately determined that the criteria
for indemnification have not been satisfied; and
b. After a determination that the facts then known to those making the determination
would not preclude indemnification under this section.
The written undertaking required by subdivision a is an unlimited general obligation of
the person making it, but need not be secured and shall be accepted without reference
to financial ability to make the repayment.
5. The articles or bylaws may prohibit indemnification or advances of expenses otherwise
required by this section or may impose conditions on indemnification or advances of
expenses in addition to the conditions contained in subsections 2, 3, and 4, including
monetary limits on indemnification or advances for expenses, if the prohibition
conditions apply equally to all persons or to all persons within a given class. A
prohibition or limit on indemnification or advances may not apply to or affect the right of
a person to indemnification or advances of expenses with respect to any acts or
omissions of the person occurring before the effective date of a provision in the articles
or the date of adoption of a provision in the bylaws establishing the prohibition or limit
on indemnification or advances.
6. This section does not require, or limit the ability of, a corporation to reimburse
expenses, including attorney's fees and disbursements, incurred by a person in
connection with an appearance as a witness in a proceeding at a time when the
person has not been made or threatened to be made a party to a proceeding.
7. All determinations whether indemnification of a person is required because the criteria
provided in subsection 2 have been satisfied and whether a person is entitled to
payment or reimbursement of expenses in advance of the final disposition of a
proceeding as provided in subsection 4 must be made:
a. By the board by a majority of a quorum, if the directors who are at the time parties
to the proceeding are not counted for determining either a majority or the
presence of a quorum;
b. If a quorum under subdivision a cannot be obtained by a majority of a committee
of the board, consisting solely of two or more directors not at the time parties to
the proceeding, duly designated to act in the matter by a majority of the full board,
including directors who are parties;
c. If a determination is not made under subdivision a or b, by special legal counsel,
selected either by a majority of the board or a committee by vote pursuant to
subdivision a or b or, if the requisite quorum of the full board cannot be obtained
and the committee cannot be established, by a majority of the full board, including
directors who are parties;
d. If a determination is not made under subdivisions a, b, and c, by the members
with voting rights, other than members who are a party to the proceeding; or
e. If an adverse determination is made under subdivisions a through d, or under
subsection 8, or if no determination is made under subdivisions a through d, or
under subsection 8, within sixty days after:
(1) The later to occur of the termination of a proceeding or a written request for
indemnification to the corporation; or
(2) A request for an advance of expenses, as the case may be, by a court in
this state, which may be the same court in which the proceeding involving
the person's liability took place, upon application of the person and any
notice the court requires.
The person seeking indemnification or payment or reimbursement of expenses
pursuant to this subdivision has the burden of establishing that the person is
entitled to indemnification or payment or reimbursement of expenses.
8. With respect to a person who is not, and who was not at the time of the acts or
omissions complained of in the proceedings, a director, officer, or person possessing,
directly or indirectly, the power to direct or cause the direction of the management or
policies of the corporation, the determination whether indemnification of this person is
required because the criteria set forth in subsection 2 have been satisfied and whether
this person is entitled to payment or reimbursement of expenses in advance of the
final disposition of a proceeding as provided in subsection 4 may be made by an
annually appointed committee of the board, having at least one member who is a
director. The committee shall report at least annually to the board concerning its
actions.
9. A corporation may purchase and maintain insurance on behalf of a person in that
person's official capacity against any liability asserted against and incurred by the
person in or arising from that capacity, whether or not the corporation would have been
required to indemnify the person against the liability under this section.
10. A corporation with members with voting rights that indemnifies or advances expenses
to a person in accordance with this section in connection with a proceeding by or on
behalf of the corporation shall report to the members in writing the amount of the
indemnification or advance and to whom and on whose behalf it was paid not later
than the next meeting of members.
11. Nothing in this section shall be construed to limit the power of the corporation to
indemnify persons other than a director, an officer, an employee, or a member of a
committee of the board by contract or otherwise.
10-33-85. Merger, consolidation, or transfer.
1. Two or more corporations may merge or consolidate, resulting in a single corporation
subject to this chapter. A merger or consolidation must be made as provided in
sections 10-33-86 through 10-33-92.
2. A corporation may sell, lease, transfer, or dispose of all or substantially all of its
property and assets under section 10-33-94.
3. If applicable, a corporation shall comply with sections 10-33-122 and 10-33-144 before
the corporation may merge, consolidate, sell, lease, transfer, or dispose of all or
substantially all of the corporation's assets.