Delaware Business Litigation Report

Court of Chancery Explains Limits on Offensive Advancement

Duthie v. CorSolutions Medical Inc., C.A. 3048-VCN (June 16, 2009)

It is well known that directors with advancement rights may call on those rights even when acting as a plaintiff. This decision explains the limits on that doctrine. In general, when there is no need to bring suit as a defensive maneuver to protect the director, then the right to have expenses advanced ends for a plaintiff.

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