Relates to the indemnification of directors, officers and key persons; ensures the survival of indemnification in case of a merger or consolidation of a corporation; provides that once a right to indemnification arises, it continues to benefit a former director, officer or key person's and their heirs and estate; makes related provisions.
Summary
Bill A05795 amends the not-for-profit corporation law in New York, specifically addressing the indemnification of directors, officers, and key persons. It repeals existing sections 721, 722, and 723, and introduces a new section 721 that outlines the conditions under which indemnification can occur. The bill allows corporations to indemnify individuals against expenses arising from legal actions related to their service, provided they meet certain standards of conduct. It also ensures that indemnification rights continue even after a merger or consolidation and extends these rights to the heirs of the individuals involved.
Impact
The bill significantly alters the legal framework surrounding indemnification for not-for-profit corporations in New York. By repealing outdated sections and introducing new provisions, it clarifies the circumstances under which indemnification is permissible and ensures that such rights are preserved in the event of corporate restructuring. This change aims to provide greater protection and assurance to individuals serving in leadership roles within not-for-profit organizations, potentially encouraging more qualified individuals to take on these responsibilities.
Sentiment
The sentiment surrounding Bill A05795 appears to be generally positive, as it seeks to modernize and clarify the indemnification process for directors and officers of not-for-profit corporations. However, without available voting history or committee discussions, it is difficult to gauge any significant opposition or concerns raised during the legislative process.
Contention
While the bill has not faced notable opposition in public discussions, potential points of contention could arise from differing opinions on the extent of indemnification protections and the implications for accountability among directors and officers. Some stakeholders may argue that broad indemnification could shield individuals from necessary accountability, while proponents may emphasize the importance of attracting qualified leaders to not-for-profit organizations.
Same As
Relates to the indemnification of directors, officers and key persons; ensures the survival of indemnification in case of a merger or consolidation of a corporation; provides that once a right to indemnification arises, it continues to benefit a former director, officer or key person's and their heirs and estate; makes related provisions.
Relates to the indemnification of directors, officers and key persons; ensures the survival of indemnification in case of a merger or consolidation of a corporation; provides that once a right to indemnification arises, it continues to benefit a former director, officer or key person's and their heirs and estate; makes related provisions.
Georgia State Indemnification Fund; the Department of Administrative Services to purchase annuities for the payment of indemnification claims; authorize
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An act to amend Sections 24801, 24826, 24827, 24830, 24862, and 24908 of, to repeal Section 24861 of, and to repeal and add Section 24863 of, the Public Utilities Code, relating to transportation.