Company: PFIS
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021551
Chunk: 22

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 22
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GOING RESOLUTION.

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Proposal 3 – To Approve an Amendment to the Company’s Bylaws by Adding a New Article 25, to Limit the Personal Liability of Directors and Officers for Monetary Damages to the Extent Permitted by Pennsylvania Law</div>

Peoples is a Pennsylvania
corporation, governed by Title 15 of the Pennsylvania Consolidated Statutes (Corporations and Unincorporated Associations), which includes
the Business Corporation Law of 1988 (the “PBCL”). Under Section 1713 of the PBCL, upon the approval by a vote of a corporation’s
shareholders, the PBCL, permitted a corporation to limit the liability of directors for actions taken as a director, unless the director’s
act breached or failed to perform the duties of a director, constituted self-dealing, willful misconduct or recklessness. Additionally,
the limitation of liability does not apply to the responsibility or liability of a director pursuant to any criminal statute or for the
payment of taxes pursuant to Federal, State or local law. In January 2023, the PBCL was amended to add Section 1735 which, upon
approval by a vote of a corporation’s shareholders, extends these provisions to officers of a corporation as well.

The board of directors believes
that adopting a provision in the Peoples bylaws that limits the liability of directors in accordance with Section 1713 of the PBCL
and for officers in accordance with Section 1735 of the PBCL is in the best interests of Peoples. As such, our board of directors,
upon the recommendation of the nominating and corporate governance committee, is submitting to a vote of our shareholders a proposed amendment
to our bylaws to eliminate or limit the personal liability of our directors and officers to the fullest extent permitted by the laws of
the Commonwealth of Pennsylvania.

Generally, the PBCL provides
that a director of a business corporation shall stand in a fiduciary relation to the corporation and shall perform the duties of a director,
including duties as a member of any committee of the board upon which the director may serve, in good faith, in a manner the director
reasonably believes to be in the best interests of the corporation and with such care, including the skill and diligence that a person
of ordinary prudence would use under similar circumstances and reasonable inquiry into those issues required by the statutes of this Commonwealth
to be considered in the circumstances and those interests and factors listed or described in the PBCL that the