BUSINESS CORPORATION ACT (EXCERPT)
Act 284 of 1972
450.1565 Limitation on total amount of expenses advanced or indemnified; duration of indemnification; elimination or impairment.
(1) The indemnification or advancement of expenses provided under sections 561 to 564c is not exclusive of other rights to which a person seeking indemnification or advancement of expenses may be entitled under the articles of incorporation, bylaws, or a contractual agreement. The total amount of expenses advanced or indemnified from all sources combined shall not exceed the amount of actual expenses incurred by the person seeking indemnification or advancement of expenses.
(2) The indemnification provided under this section and sections 561 to 564c continues as to a person that ceases to be a director, officer, employee, or agent and inures to the benefit of the heirs, personal representatives, and administrators of the person if the person is an individual.
(3) A corporation shall not eliminate or impair a right to indemnification or to advancement of expenses established in a provision of the articles of incorporation or the bylaws by amending that provision after the occurrence of the act or omission that is the subject of the formal or informal civil, criminal, administrative, or investigative action, suit, or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of that act or omission explicitly authorizes that elimination or impairment after that act or omission occurs.
History: 1972, Act 284, Eff. Jan. 1, 1973
Am. 1987, Act 1, Eff. Mar. 1, 1987
Am. 1989, Act 121, Eff. Oct. 1, 1989
Am. 1993, Act 91, Eff. Oct. 1, 1993
Am. 2012, Act 569, Imd. Eff. Jan. 2, 2013
© 2009 Legislative Council, State of Michigan