Montana Code 35-18-333. Application
35-18-333. Application. (1) A provision treating a cooperative‘s indemnification of trustees or officers that is contained in its articles of incorporation, its bylaws, a resolution of its shareholders or board of directors, a contract, or other instrument is valid only if and to the extent that the provision is consistent with 35-18-327 through 35-18-333. If articles of incorporation limit indemnification, indemnification is valid only to the extent that it is consistent with the articles of incorporation.
Terms Used In Montana Code 35-18-333
- articles of incorporation: as used in this chapter includes the articles of conversion of a converted corporation. See Montana Code 35-18-206
- Contract: A legal written agreement that becomes binding when signed.
- Cooperative: means a corporation organized under this chapter or a corporation that becomes subject to the provisions of this chapter. See Montana Code 35-18-102
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Trustee: A person or institution holding and administering property in trust.
(2)Sections 35-18-327 through 35-18-333 do not limit a cooperative’s power to pay or reimburse expenses incurred by a trustee or officer in connection with the trustee’s or officer’s appearance as a witness in a proceeding at a time when the trustee or officer has not been made a named defendant or respondent to the proceeding.