Article Archives >> Lead Stories >> March 1-16, 2004
Preview of Article:
Nonprofit corporation must indemnify
treasurer who
successfully defends against defamation suit
Statute requires indemnification
where director is "wholly successful"
in a proceeding in which he is named because of his service as director
A nonprofit corporation has been ordered to pay $65,000 in legal fees incurred by the organization's treasurer who successfully defended himself against a defamation claim arising out of his work for the corporation. A Court of Appeals of Texas has held that the indemnification is required under the state's nonprofit corporation law even though the Society considered the litigation a "private matter" between the parties. ( Charles A. George Dental Society v. Poindexter , Ct. of App., First Dist., No. 01-02-01230, 1/29/03.)
Article Archives >> Lead Stories >> March 1-16, 2004
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