{"data":{"id":"us-al/ala.-code-10a-1-6.23","jurisdiction":"us-al","citation":"Ala. Code § 10A-1-6.23","heading":"Manner for Determining Permissive Indemnification.","body":"(a) Except as otherwise provided by subsections (b) and (c), the determinations required under Section 10A-1-6.21(a) must be made by:\n(1) a majority vote of a quorum composed of the governing persons who at the time of the vote are disinterested and independent;\n(2) if a quorum described by subsection (a)(1) cannot be obtained, a majority vote of a committee of the board of directors of the enterprise designated to act in the matter by a majority vote of the governing persons and composed of at least one governing person who at the time of the vote is disinterested and independent;\n(3) special legal counsel selected by the board of directors of the enterprise, or selected by a committee of the board of directors, by vote in accordance with subdivision (1) or subdivision (2) or, if a quorum described by subdivision (1) cannot be obtained and a committee described by subdivision (2) cannot be established, by a majority vote of the governing persons of the enterprise;\n(4) a majority of the membership interests that are entitled to vote on the transactions by virtue of not being owned by or under control of the governing persons constitutes a quorum for purposes of taking action under this section; or\n(5) a unanimous vote of the owners or members of the enterprise.\n(b) If special legal counsel determines under subsection (a)(3) that a person meets the standard under Section 10A-1-6.21(a)(1), the special legal counsel shall determine whether the amount of expenses is reasonable under Section 10A-1-6.21(a)(2) but may not determine whether indemnification should be paid under Section 10A-1-6.21(a)(3). The determination whether indemnification should be paid must be made in a manner specified by subsection (a)(1), (2), (4), or (5).\n(c) A provision contained in the governing documents of the enterprise, a resolution of the owners, members, or governing authority, or an agreement that requires the indemnification of a person who meets the standard under Section 10A-1-6.21(a)(1) constitutes a determination under Section 10A-1-6.21(a)(3) that indemnification should be paid even though the provision may not have been adopted or authorized in the same manner as the determinations required under Section 10A-1-6.21(a). The determinations required under Section 10A-1-6.21(a)(1) and (2) must be made in a manner provided by subsection (a).","path":["Title 10A Alabama Business and Nonprofit Entities Code.","Chapter 1 General Provisions.","Article 6 Indemnification and Insurance.","Division C Permissive Indemnification and Advancement of Expenses."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=10A-1-6.23","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:53Z","sha256":"9aeb894341ae4a0c858bcf9904f8f2ef8ca0f45a3193aa801d28c7d96d3bab07","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-10a-1-6.22","next":"us-al/ala.-code-10a-1-6.24"},"notice":"GroundRules: Original legal text. Not legal advice."}