2006 Utah Code - 7-7-3.1 — Limitation of personal liability of directors.

     7-7-3.1.   Limitation of personal liability of directors.
     (1) Without limiting the generality of Section 7-7-3.2, the articles of incorporation may include a provision eliminating or limiting the personal liability of a director to the association, its stockholders, members, or depositors for monetary damages for any action taken or any failure to take any action as a director, except liability for:
     (a) the amount of a financial benefit received by a director to which the director is not entitled;
     (b) infliction of harm on the association, its stockholders, members, or depositors; or
     (c) an intentional violation of criminal law.
     (2) No provision authorized under this section may eliminate or limit the liability of a director for any act or omission occurring prior to the date when the provision becomes effective.
     (3) Any provision authorized under this section to be included in the articles of incorporation may also be adopted in the bylaws or by resolution, but only if the provision is approved by the same percentage of shareholders as would be required to approve it as an amendment to the articles of incorporation.
     (4) Any federal association or out-of-state association may adopt any provision authorized under this section.

Amended by Chapter 49, 1995 General Session