If you're an ESOP fiduciary, or the board responsible for appointing ESOP fiduciaries, you know that fiduciaries face personal liability if a court finds they've breached their duty to the plan participants and beneficiaries. How do you protect fiduciaries against that possibility? Most fiduciaries want to be indemnified, but who can foot that bill? The company? The ESOP? And how should the indemnification be structured? Case law in the last decade has muddied the answers to those questions, although the 2013 Harris v. GreatBanc decision may have been a step in the right direction. This article will give you a good head start on what you need to know.
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