Statutes > Arkansas Statutes > Title 4 - Business and Commercial Law > Subtitle 3 - Corporations And Associations > Chapter 32 - Small Business Entity Tax Pass Through Act > Subchapter 4 - Rights and Duties of Members and Managers > § 4-32-404 - Limitation of liability and indemnification of members and managers.

§ 4-32-404 - Limitation of liability and indemnification of members and managers.

4-32-404. Limitation of liability and indemnification of members and managers.

An operating agreement which is in writing may:

(1) Eliminate or limit the personal liability of a member or manager for monetary damages for breach of any duty provided for in 4-32-402; and

(2) Provide for indemnification of a member or manager for judgments, settlements, penalties, fines, or expenses incurred in a proceeding to which a person is a party because the person is or was a member or manager.