NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 1027

HOUSE BILL 1463

 

 

AN ACT TO AMEND CHAPTER 55A TO ALLOW INDEMNIFICATION OF DIRECTORS EXCEPT FOR BAD FAITH OR WILLFUL MISCONDUCT.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 55A-15(a)(8) is amended to read as follows:

"(8)      Subject to any restrictions in the charter, to provide by bylaw, agreement, vote of board of directors or members, or otherwise, for indemnification of any director or officer or former director or officer of the corporation or any person who may have served at its request as a director or officer of another corporation, whether for profit or not for profit, against expenses actually and necessarily incurred by him in connection with the defense of any action, suit or proceeding in which he is made a party by reason of being or having been such director or officer, except in relation to matters as to which he shall be adjudged in such action, suit or proceeding to have acted in bad faith or to have been liable or guilty by reason of willful misconduct in the performance of duty."

Sec. 2.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 8th day of June, 1979.