{"data":{"id":"us-ky/krs-304.29-081","jurisdiction":"us-ky","citation":"KRS 304.29-081","heading":"Personal liability.","body":"(1) The officers and members of the supreme governing body or any subordinate body\nof a society shall not be personally liable for any benefits provided by a society.\n(2) Any person may be indemnified and reimbursed by any society for expenses\nreasonably incurred by, and liabilities imposed upon, the person in connection with\nor arising out of any action, suit, or proceeding, whether civil, criminal,\nadministrative, or investigative, or threat thereof, in which the person may be\ninvolved by reason of the fact t hat he or she is or was a director, officer, employee\nor agent of the society or of any firm, corporation, or organization which he or she\nserved in any capacity at the request of the society. A person shall not be\nindemnified or reimbursed in relation to any matter in such action, suit, or\nproceeding as to which he or she shall finally be adjudged to be or have been guilty\nof breach of a duty as a director, officer, employee, or agent of the society nor in\nrelation to any matter in such action, suit, or pr oceeding, or threat thereof, which\nhas been made the subject of a compromise settlement, unless in either case the\nperson acted in good faith for a purpose the person reasonably believed to be in, or\nnot opposed to, the best interests of the society and, i n a criminal action or\nproceeding, in addition, had no reasonable cause to believe that his or her conduct\nwas unlawful. The determination whether the conduct of the person met the\nstandard required in order to justify indemnification and reimbursement in relation\nto any matter described in the preceding sentence may only be made by the supreme\ngoverning body or board of directors by a majority vote of a quorum consisting of\npersons who were not parties to the action, suit, or proceeding or by a court of\ncompetent jurisdiction. The termination of any action, suit, or proceeding by\njudgment, order, settlement, conviction, or upon a plea of no contest, as to the\nperson shall not create a conclusive presumption that the person did not meet the\nstandard of conduct required in order to justify indemnification and reimbursement.\nThe foregoing right of indemnification and reimbursement shall not be exclusive of\nother rights to which the person may be entitled as a matter of law and shall inure to\nthe benefit of his or her heirs, executors, and administrators.\n(3) A society may purchase and maintain insurance on behalf of any person who is or\nwas a director, officer, employee, or agent of the society, or who is or was serving at\nthe request of the society as a director, officer, employee, or agent of any other firm,\ncorporation, or organization against any liability asserted against the person and\nincurred by him or her in any such capacity or arising out of his or her status as\nsuch, whether or not the society would h ave the power to indemnify the person\nagainst such liability under this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29661","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:52Z","sha256":"074317c49acb8611387e9cac49c20e6109472317ed42e4549e02550d60ec1c3a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.29-080","next":"us-ky/krs-304.29-090"},"notice":"GroundRules: Original legal text. Not legal advice."}