North Carolina General Statutes 55-8-56. Indemnification of officers, employees, and agents
Unless a corporation‘s articles of incorporation provide otherwise:
(1) An officer of the corporation is entitled to mandatory indemnification under N.C. Gen. Stat. § 55-8-52, and is entitled to apply for court-ordered indemnification under N.C. Gen. Stat. § 55-8-54, in each case to the same extent as a director;
Terms Used In North Carolina General Statutes 55-8-56
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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
(2) The corporation may indemnify and advance expenses under this Part to an officer, employee, or agent of the corporation to the same extent as to a director; and
(3) A corporation may also indemnify and advance expenses to an officer, employee, or agent who is not a director to the extent, consistent with public policy, that may be provided by its articles of incorporation, bylaws, general or specific action of its board of directors, or contract. (1955, c. 1371, s. 1; 1969, c. 797, s. 2; 1973, c. 469, s. 6; 1985 (Reg. Sess., 1986), c. 1027, s. 39; 1989, c. 265, s. 1.)