Delaware Business Litigation Report

Court Of Chancery Explains Advancement Rights Of Former Director

Marino v. Patriot Rail Company LLC, C.A. 11605-VCL (February 29, 2016) 

As is well known, a former director may be entitled to have his fees advanced in suits against him even after he has resigned from the board. This decision explains the history behind those rights and how they have been steadily expanded over the years. It upholds advancement for acts committed as a director but not for post-resignation acts. It also sets out yet another way in which disputes over the amounts to be advanced will be determined.

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