[Anonymous]

In the REG Ninja notes, it says that Corporations can pay for their officer’s legal fees in defending a lawsuit brought on them from carrying out their normal duties, exception: if shareholders bring a suit against the officers, the corporation cannot help defend them.

In one of the Wiley book questions, it says Under the Revised Model Business Corporation Act, which of the following statements is correct regarding corporate officers of a public corporation?

The answer is “A corporation may be authorized to indemnify its officers for liability incurred in a suit by stockholders.”

So which one is correct? or are they different situations?