A new article in the Illinois Bar Journal explains officers and directors rights to the corporation paying for their legal fees and costs when they face litigation for corporate related activities.
The article focuses on corporations’ contractual obligations to advance litigation expenses to its directors and officers–even where the corporation has sued the director or officer. As explained in the article, most states allow companies to provide their officers and directors a right to advancement of litigation expenses in suits filed by reason of their corporate poistion.
The article states:
Officers or directors of corporations who wind up defending themselves in litigation or corporate investigations are sometimes unaware of a valuable perk – the corporation’s obligation, either through indemnification agreements or bylaws, to advance litigation expenses to key employees. Even eligible employees (as defined by the contract) who recall that they are covered by an advancement provision may not fully appreciate how broad that right can be.
To read the full article click here.
The Chicago business dispute lawyers at Lubin Austermuehle handle all types of disputes among shareholders, and officers and directors of corporations. We have defended officers and directors in many types of lawsuits including claims that the officers and directors of small or large publicly traded corporations breached fiduciary duties. Our Chicago officer and director litigation attorneys have more than two and half decades of experience in Illinois business litigation. We understand what behaviors constitute a breach of fiduciary duty, misappropriation of assets, breach of business agreement and other common causes of action. Our goal as Chicago commercial trial lawyers is always to resolve our clients’ cases favorably and as quickly as reasonable, so clients can get back to their businesses.
If you’re an officer or director of a corporation facing suit and you’re looking for experienced legal counsel who have sucessfully defended other officers or directors, call Lubin Austermuehle for a consultation at (833) 306-4933 or send us an email today.