LD 1539
pg. 34
Page 33 of 104 PUBLIC Law Chapter 344 Page 35 of 104
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LR 1942
Item 1

 
B. Order indemnification or an advance for expenses if the
court determines that the director is entitled to
indemnification or an advance for expenses pursuant to a
provision authorized by section 859, subsection 1; or

 
C. Order indemnification or an advance for expenses if the
court determines, in view of all the relevant circumstances,
that it is fair and reasonable:

 
(1) To indemnify the director; or

 
(2) To advance expenses to the director even if the
director has not met the relevant standard of conduct
set forth in section 852, subsection 1, failed to
comply with section 854 or was adjudged liable in a
proceeding referred to in section 852, subsection 4,
paragraph A or B, but, if the director was adjudged so
liable, the director's indemnification must be limited
to reasonable expenses incurred in connection with the
proceeding.

 
2. Entitlement to expenses. If the court determines that the
director is entitled to indemnification under subsection 1,
paragraph A or to indemnification or an advance for expenses
under subsection 1, paragraph B, the court shall also order the
corporation to pay the director's reasonable expenses incurred in
connection with obtaining the court-ordered indemnification or
advance for expenses. If the court determines that the director
is entitled to indemnification or an advance for expenses under
subsection 1, paragraph C, the court may also order the
corporation to pay the director's reasonable expenses to obtain
incurred in connection with obtaining the court-ordered
indemnification or advance for expenses.

 
§856. Determination and authorization of indemnification

 
1. Prerequisites to indemnity. A corporation may not
indemnify a director under section 852, subsection 1 unless
authorized for a specific proceeding after a determination has
been made that indemnification of the director is permissible
because the director has met the relevant standard of conduct set
forth in section 852.

 
2. Determination process. A determination under subsection 1
that indemnification is permissible must be made:

 
A. If there are 2 or more disinterested directors, by the
corporation's board of directors by a majority vote of all the
disinterested directors, a majority of whom for this purpose
constitutes a quorum, or by a majority of the


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