The Case for Non-Discretionary Advancement Policies

Non-discretionary advancement policies provide officers and directors with the necessary resources to resist unjustified lawsuits. At the same time, they encourage highly qualified people to serve as officers and directors, 'secure in the knowledge that the corporation will absorb the costs of defending their honesty and integrity.'

8 minute read July 30, 2008 at 09:06 AM
By
Marjorie J. Peerce And Nathaniel I. Kolodny
The Case for Non-Discretionary Advancement Policies

You have recently been appointed General Counsel of a publicly traded Delaware corporation. A few months into your tenure, the Board asks whether the company should establish a policy for the automatic advancement of defense costs to officers or directors involved in company-related litigation.

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