Pennsylvania Consolidated Statutes

15 Pa. Cons. Stat. § 5746 (2026)

 Supplementary coverage.

✓ current as of May 2026
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§ 5746.  Supplementary coverage.

(a)  General rule.--The indemnification and advancement of expenses provided by or granted pursuant to the other sections of this subchapter shall not be deemed exclusive of any other rights to which a person seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of members or disinterested directors or otherwise, both as to action in an official capacity and as to action in another capacity while holding that office. Section 5728 (relating to interested directors or officers; quorum) shall be applicable to any bylaw, contract or transaction authorized by the directors under this section. A corporation may create a fund of any nature, which may, but need not, be under the control of a trustee, or otherwise secure or insure in any manner its indemnification obligations, whether arising under or pursuant to this section or otherwise.

(b)  When indemnification is not to be made.--Indemnification pursuant to subsection (a) shall not be made in any case where the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness.

(c)  Grounds.--Indemnification pursuant to subsection (a) under any bylaw, agreement, vote of members or directors or otherwise may be granted for any action taken or any failure to take any action and may be made whether or not the corporation would have the power to indemnify the person under any other provision of law except as provided in this section and whether or not the indemnified liability arises or arose from any threatened, pending or completed action by or in the right of the corporation. Such indemnification is declared to be consistent with the public policy of this Commonwealth.

(d)  Trust property.--This subchapter shall not affect the liability of a representative with respect to the administration of assets held by the corporation pursuant to section 5547 (relating to authority to take and hold trust property).

(Dec. 21, 1988, P.L.1444, No.177, eff. Oct. 1, 1989; Dec. 19, 1990, P.L.834, No.198, eff. imd.; July 9, 2013, P.L.476, No.67, eff. 60 days)

 

2013 Amendment.  Act 67 amended subsec. (a).

1990 Amendment.  Act 198 reenacted and amended the entire section.

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 1995–2023 · leading case: Neal v. Neumann Med. Ctr., 667 A.2d 479 (Pa. Commw. Ct. 1995).
Neal v. Neumann Med. Ctr., 667 A.2d 479 (Pa. Commw. Ct. 1995). · cites it 2× “Section 5746(b) of the Nonprofit Law, 15 Pa.C.S. § 5746(b) [Supplementary coverage — when indemnification is not to be made] affords that indemnification is disallowed where the act or omission underlying the indemnification claim is judicially determined to have been willful…”
Porat, M. v. Temple Univ. (Pa. Super. Ct. 2023). · cites it 2× “He maintains that the By-Laws mirror the language of 15 Pa.C.S. § 5746(a) and speak directly to a situation in which an individual has separate rights to advancement under more than one contract.”
— 15 Pa. Cons. Stat. § 5746(a) — 1 case
Porat, M. v. Temple Univ. (Pa. Super. Ct. 2023). “He maintains that the By-Laws mirror the language of 15 Pa.C.S. § 5746(a) and speak directly to a situation in which an individual has separate rights to advancement under more than one contract.”
— 15 Pa. Cons. Stat. § 5746(b) — 1 case
Neal v. Neumann Med. Ctr., 667 A.2d 479 (Pa. Commw. Ct. 1995). “Section 5746(b) of the Nonprofit Law, 15 Pa.C.S. § 5746(b) [Supplementary coverage — when indemnification is not to be made] affords that indemnification is disallowed where the act or omission underlying the indemnification claim is judicially determined to have been willful…”
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