Recent Delaware Court of Chancery Opinion Provides Guidance on Advancement and Indemnification
October 2015
Publication| Corporate Transactions| Corporate & Chancery Litigation
A recent opinion of the Delaware Court ofChancery provides guidance on drafting indemnification and advancement provisions, and clarifiesthe circumstances under which a director or officer may or may not be entitled to advancement “byreason of the fact” of his or her service as such. TheCourt held, among other things, that a provision ofa certificate of incorporation extending mandatoryadvancement rights to a director or officer, withoutspecifying that it applied to both current and formerdirectors and officers, only applied to currentdirectors and officers.