Source: https://vacode.org/13.1-700.1/
Timestamp: 2019-06-26 02:47:12
Document Index: 292302394

Matched Legal Cases: ['§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 13']

Court orders for advances, reimbursement or indemnification (§ 13.1-700.1)—Virginia Decoded - Virginia Decoded
← Previous13.1-700 Repealed
Next →13.1-701 Determination and authorization of indemnification
§ 13.1-700.1 Court orders for advances, reimbursement or . . .
§ 13.1-700.1
Court orders for advances, reimbursement or indemnification
A. An individual who is made a party to a proceeding because he is a director of the corporation may apply to a court for an order directing the corporation to make advances or reimbursement for expenses or to provide indemnification. Such application may be made to the court conducting the proceeding or to another court of competent jurisdiction.
B. The court shall order the corporation to make advances and/or reimbursement for expenses or to provide indemnification if it determines that the director is entitled to such advances, reimbursement or indemnification and shall also order the corporation to pay the director’s reasonable expenses incurred to obtain the order.
C. With respect to a proceeding by or in the right of the corporation, the court may (i) order indemnification of the director to the extent of his reasonable expenses if it determines that, considering all the relevant circumstances, the director is entitled to indemnification even though he was adjudged liable to the corporation and (ii) also order the corporation to pay the director’s reasonable expenses incurred to obtain the order of indemnification.
D. Neither (i) the failure of the corporation, including its board of directors, its independent legal counsel and its shareholders, to have made an independent determination prior to the commencement of any action permitted by this section that the applying director is entitled to receive advances and/or reimbursement nor (ii) the determination by the corporation, including its board of directors, its independent legal counsel and its shareholders, that the applying director is not entitled to receive advances and/or reimbursement or indemnification shall create a presumption to that effect or otherwise of itself be a defense to that director’s application for advances for expenses, reimbursement or indemnification.
1987, cc. 59, 257; 2005, c. 765.
If you’re reading this for anything important, you should double-check its accuracy—read § 13.1-700.1 on the official Code of Virginia website.
§ 13.1-1230 Indemnification
§ 13.1-697 Authority to indemnify
§ 13.1-699 Advance for expenses