Colorado § 7-109-104 - Advance of expenses to directors.
Full text of Colorado Colorado Revised Statutes § 7-109-104 — Advance of expenses to directors., with citation guidance and answers to common questions.
§ 7-109-104. Advance of expenses to directors.
(1) A corporation may, before final disposition of a proceeding, pay for or reimburse the reasonable expenses incurred by an individual who is a party to a proceeding because that person is a director if:
(a) The director delivers to the corporation a written affirmation of the director's good faith belief that:
(I) The director has met the relevant standard of conduct described in section 7-109-102; or
(II) The proceeding involves conduct for which liability has been eliminated under a provision in the articles of incorporation as authorized by section 7-102-102 (2)(d); and
(b) The director delivers to the corporation a written undertaking, executed personally or on the director's behalf, to repay any funds advanced if the director is not entitled to mandatory indemnification under section 7-109-103 and it is ultimately determined under section 7-109-105 or 7-109-106 that the director has not met the relevant standard of conduct described in section 7-109-102.
(2) The undertaking required by subsection (1)(b) of this section is an unlimited general obligation of the director but need not be secured and may be accepted without reference to financial ability to make repayment.
(3) Authorizations of payments under this section shall be made in the manner specified in section 7-109-106.
Source: L. 93: Entire article added, p. 791, § 1, effective July 1, 1994. L. 2004: (1) amended, p. 1501, § 267, effective July 1. L. 2019: Entire section amended, (SB 19-086), ch. 166, p. 1938, § 40, effective July 1, 2020.
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 7-109-104
What does Colorado Revised Statutes § 7-109-104 cover?
Section 7-109-104 ("Advance of expenses to directors.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 7-109-104?
A common citation format is "Colorado Revised Statutes § 7-109-104" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 7-109-104 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.