<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 47-17-22 - Circumstances under which directors, officers, agents, and employees may not be indemnified. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069050Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069050SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069050CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069050Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069050DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069050Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069050000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069050SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069050SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069050Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-17-22"><span class="s2069050SENU">47-17-22</span></a><span xml:space="preserve" class="s2069050SENU">. </span><span class="s2069050CL">Circumstances under which directors, officers, agents, and employees may not be indemnified.</span></p><p dir="ltr" class="s2069050Normal-000000"><span class="s2069050DefaultParagraphFont">Unless otherwise ordered by a court, a cooperative may not indemnify a director, officer, agent, or employee:</span></p><p dir="ltr" class="s2069050Normal-000001"><span xml:space="preserve" class="s2069050DefaultParagraphFont">(1)    In connection with a proceeding by or in the right of the cooperative, except for reasonable expenses incurred in connection with the proceeding if it is determined that the director, officer, agent, or employee has met the relevant standard of conduct pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=47-17-21"><span class="s2069050DefaultParagraphFont">47-17-21</span></a><span class="s2069050DefaultParagraphFont">; or</span></p><p dir="ltr" class="s2069050Normal-000001"><span class="s2069050DefaultParagraphFont">(2)    In connection with any proceeding with respect to conduct for which the director, officer, agent, or employee was adjudged liable on the basis that the director, officer, agent, or employee received a financial benefit to which the director, officer, agent, or employee was not entitled, whether or not involving action in the official capacity of the director, officer, agent, or employee.</span></p><p dir="ltr" class="s2069050Normal"><span xml:space="preserve" class="s2069050000002"> </span></p><p dir="ltr" class="s2069050Normal"><span class="s2069050SCL">Source:</span><span xml:space="preserve" class="s2069050SCL-000003"> SL 2007, ch 260, § 5; SL 2009, ch 232, § 5.</span></p></div></body></html>