Texas Business Organizations Code

§ 8.101 — PERMISSIVE INDEMNIFICATION

BO § 8.101Title 1. GENERAL PROVISIONS · Ch. 8. INDEMNIFICATION AND INSURANCE · Art. C. PERMISSIVE INDEMNIFICATION AND ADVANCEMENT OF EXPENSES

Statute text

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(a)An enterprise may indemnify a governing person, former governing person, or delegate who was, is, or is threatened to be made a respondent in a proceeding to the extent permitted by Section 8.102 if it is determined in accordance with Section 8.103 that:

(1)the person:

(A)acted in good faith;

(B)reasonably believed:

(i)in the case of conduct in the person's official capacity, that the person's conduct was in the enterprise's best interests; and

(ii)in any other case, that the person's conduct was not opposed to the enterprise's best interests; and

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Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.