INDEMNIFICATION OF
OFFICERS AND DIRECTORS

Indemnify: to insure or protect against damage, loss or injury; to reimburse or compensate for damage, loss or injury. An indemnity is a guarantee to pay board members' legal costs for claims that result from board service.

With some exceptions, association documents indemnify officers and directors against expenses, judgments, fines, settlements and attorneys' fees reasonably incurred in connection with any threatened or actual civil or criminal proceedings.

In civil proceedings, persons may be indemnified if they acted in good faith and in a manner reasonably believed to be in the best interests of the association. In the case of criminal proceedings, they may be indemnified if they had no reasonable cause to believe their conduct was unlawful. Corp. Code §7237

See Ethics menu <left> for related subjects.

Updated by ADAMS KESSLER 8/9/2008