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Current as of April 14, 2021 | Updated by FindLaw Staff
(a) Notwithstanding any other provision of this chapter but subject to Section 8.003 and to the extent consistent with other law, an enterprise may indemnify and advance expenses to a person who is not a governing person, including an officer, employee, or agent, as provided by:
(1) the enterprise's governing documents;
(2) general or specific action of the enterprise's governing authority;
(3) resolution of the enterprise's owners or members;
(4) contract; or
(5) common law.
(b) An enterprise shall indemnify an officer to the same extent that indemnification is required under this chapter for a governing person.
(c) A person described by Subsection (a) may seek indemnification or advancement of expenses from an enterprise to the same extent that a governing person may seek indemnification or advancement of expenses under this chapter.
(d) Notwithstanding any authorization or determination specified in this chapter, an enterprise may pay or reimburse, in advance of the final disposition of a proceeding and on terms the enterprise considers appropriate, reasonable expenses incurred by:
(1) a former governing person or delegate who was, is, or is threatened to be made a respondent in the proceeding; or
(2) a present or former employee, agent, or officer who is not a governing person of the enterprise and who was, is, or is threatened to be made a respondent in the proceeding.
(e) A determination of indemnification for a person who is not a governing person of an enterprise, including an officer, employee, or agent, is not required to be made in accordance with Section 8.103.
Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 8.105. Indemnification of and Advancement of Expenses to Persons Other than Governing Persons - last updated April 14, 2021 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-8-105/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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