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Indemnification Corporate Officers

Felicello Law PC

Congratulations On Your New Role: Here’s How to Protect Yourself Legally

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If you have recently obtained a new position in the C-Suite, you are aware that the new position brings prestige, authority, and opportunity. But you may not be aware that as an officer of a company, you have also increased...more

Hogan Lovells

Gilbert v. Unisys: The Court of Chancery grants advancement to unelected officers

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In Gilbert v. Unisys Corp., the Delaware Court of Chancery held that two former employees with the title of Vice President were entitled to advancement of litigation expenses brought by the corporation, despite the fact that...more

Goodwin

What to Do When Faced With a Potential Claim Under Your D&O Insurance Policy

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Making a claim under your directors and officers (D&O) insurance policy should be straightforward, right? Not quite. We suggest you consider the following approaches to help you navigate the claim process and maximize the...more

Venable LLP

Indemnification Agreements under Maryland Law: Additional Protection for Directors and Officers

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As scrutiny of public companies continues to increase, it is important for directors and officers to understand the full range of protections from personal liability available to them and for a company to be cognizant of its...more

Conyers

Directors in the Firing Line

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While those running companies may be aware of the numerous management and accounting breaches that can give rise to civil liability, there is generally less recognition of the possibility that breaches can also give rise to...more

Fox Rothschild LLP

A Bitter Dish in the Dessert Industry: Company Pays Litigation Expenses for a Corporate Officer who Won Dismissal of Its...

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PreGel America makes and distributes products used in the gelato, ice cream and pastry business. But it alleges a far less than sweet experience with its former CEO, who the company says approved unauthorized personal salary...more

Robins Kaplan LLP

Advancement Proceedings: A Litigation Expense Your Client Might Not Have Anticipated

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When representing a client, it is helpful when law and logic align in an obvious manner. But alignment of law and logic sometimes appears murky at best, and often directly at odds. An example of this is when you need to...more

Morris James LLP

Delaware Court of Chancery Holds Company in Contempt for Failure to Pay Advancement

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Directors, officers and other members of management often have the right under a company’s organizational documents to have defense costs advanced during the pendency of a covered case, investigation or other proceeding. If...more

Woodruff Sawyer

An Easy-to-Understand Guide to Private Company D&O Insurance - 2023 Edition

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8 Reasons to Buy D&O Insurance - 1. Attracting New Directors: D&O insurance makes board seats more attractive. 2. Investor Requirements: Some venture capital and private equity firms require that their portfolio...more

Goodwin

SEC Approves December 1st Deadline for NYSE and Nasdaq Clawback Policies: Preparations Companies Should Consider Undertaking Now

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On June 9, 2023, the U.S. Securities and Exchange Commission (SEC) approved amendments filed earlier that week by the New York Stock Exchange (NYSE) and The Nasdaq Stock Exchange (Nasdaq) that, among other things, provided...more

Williams Mullen

North Carolina Business Court’s Recent Opinions on Advancements and Indemnification for Company Officials

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Serving as a company official—whether an LLC manager or an officer or director of a corporation—can sometimes be a risky prospect. Company officials on occasion find themselves at the center of complex litigation solely...more

Smith Anderson

Institutional Shareholder Services and Glass Lewis Update Proxy Voting Guidelines for 2023

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Institutional Shareholder Services (ISS) and Glass, Lewis & Co. (Glass Lewis), the two leading providers of corporate governance research and proxy voting services, have published their updated proxy voting guidelines for...more

Woodruff Sawyer

Personal Liability Protection: A Simple Guide for Directors and Officers

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As a director or officer of a public or private company, you need to have strong protections in place to reduce your exposure to personal liability, as well as appropriately respond in case you become subject to an...more

Woodruff Sawyer

Director & Officer Liability Issues Post-Roe: Dobbs v. Jackson FAQs

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Dobbs v. Jackson Women’s Health Organization is the landmark US Supreme Court decision that effectively overturned settled case law (Roe v. Wade) by holding that the United States Constitution does not confer the right to...more

Woodruff Sawyer

An Easy-to-Understand Guide to Private Company D&O Insurance

Woodruff Sawyer on

8 Reasons to Buy D&O Insurance - 1. Attracting New Directors: D&O insurance makes board seats more attractive. 2. Investor Requirements: Some venture capital and private equity firms require that their portfolio...more

Faegre Drinker Biddle & Reath LLP

The Corporate Guide: Directors’ and Officers’ Indemnification Rights

How do advancement or indemnification rights arise? Section 145 of the Delaware General Corporation Law (DGCL) allows corporations to protect present and former directors and officers from expenses incurred in connection...more

Morgan Lewis

Delaware Fully Embraces Captive Insurance as an Option to Protect Directors and Officers

Morgan Lewis on

Delaware amended its Corporation Law (Section 145(g)) to expressly permit the use of captive insurance to protect directors and officers, including from claims for which indemnification is prohibited, joining many other key...more

Woodruff Sawyer

Take Personal Indemnification Agreements Seriously as D&O Insurance Rates Rise

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If you are serving as an officer or director of a public company (or a large private company), it has never been more important to make sure that you have an aggressively protective personal indemnification agreement. ...more

Morris James LLP

Chancery Stays Advancement Action in Favor of Pending Related Federal Action

Morris James LLP on

The Harmon 1999 Descendants’ Trust v. CGH Investment Management, LLC, C.A. No. 2021-0407-KSJM (Sept. 21, 2021) - Generally, absent unusual circumstances, claims for advancement will not be stayed or dismissed in favor of...more

Skadden, Arps, Slate, Meagher & Flom LLP

Insurance Considerations for Directors and Officers of Delaware Entities

As directors and officers (Ds&Os) face exposure to potential personal liability claims, they should consider the principal protections available to them. Part one of this two-part series provided a “nuts and bolts” overview...more

Skadden, Arps, Slate, Meagher & Flom LLP

Indemnification Considerations for Directors and Officers of Delaware Entities

Directors and officers (Ds&Os) face exposure to potential personal liability for claims made against them in their capacity as directors and officers of the companies that they serve. This article is part one in a two-part...more

Orrick, Herrington & Sutcliffe LLP

Time to Review D&O Liability Protections in Distressed Private Companies

The COVID-19 pandemic is testing the oversight and management skills of directors and officers (“D&Os”) of all businesses, especially lean private companies....more

K&L Gates LLP

Chancery Court Reaffirms Protection of Mandatory Advancement Rights

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In Nielsen v. EBTH Inc., C.A. No. 2019-0164-MTZ (Del. Ch. Sep. 30, 2019), the Delaware Court of Chancery reaffirmed its standard favoring advancement of expenses to officers or directors of a company where the corporation...more

Farrell Fritz, P.C.

Ambiguous Advancement Provision Favors Former Officer and Director

Farrell Fritz, P.C. on

I’ve long been intrigued with the frequency of litigation — especially in Delaware Chancery Court — over advancement of legal fees of a corporate director or officer or LLC manager who’s the target of a lawsuit by the entity...more

Pillsbury - Policyholder Pulse blog

The Private Vs. Public D&O Insurance Forum: Important Considerations for Companies Looking to Avoid Growing Pains

Although it has become common for corporate directors and officers to face claims seeking to hold them personally liable for alleged damages resulting from actions taken in their official capacity, it wasn’t always this way....more

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