yourstate.us
Tex. Local Government Code § 501.066

INDEMNIFICATION

Texas · Texas Local Government Code · Status: effective

Get this as JSONEmbed this
Cite this
Citation
Tex. Local Government Code § 501.066, INDEMNIFICATION, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/693992
Permanent ID
ys:prov:693992@1
SHA-256
ebf9f99db0862e57e9d18dacfde14419ce4d916634db9069c172630cdc7967af

The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.

Full text

(a) In this section, "director or officer" includes a former director or officer. (b) Except as provided by Subsection (d), a corporation may indemnify a director or officer of the corporation for necessary expenses and costs, including attorney's fees, actually incurred by the director or officer in connection with a claim asserted against the director or officer, by action in court or another forum, by reason of the director's or officer's being or having been a director or officer of the corporation. (c) Except as provided by Subsection (d), if a corporation has not fully indemnified a director or officer under Subsection (b), the court in a proceeding in which a claim is asserted against the director or officer or a court having jurisdiction over an action brought by the director or officer on a claim for indemnity may assess indemnity against the corporation or the corporation's receiver or trustee. The assessment must equal the amount that the director or officer paid to satisfy the judgment or compromise the claim, including attorney's fees and not including any amount paid to the corporation, to the extent that: (1) the amount paid was actually and necessarily incurred; and (2) the court considers the amount paid reasonable and equitable. (d) A corporation may not indemnify a director or officer for a matter in which the director or officer is guilty of negligence or misconduct. A court may assess indemnity against the corporation only if the court finds that the director or officer was not guilty of negligence or misconduct in the matter for which indemnity is sought.