District of Columbia Indemnification Agreement between corporation and its current and future directors

• Category: Corporations - Public - Indemnification
• State: Multi-State
• Control #: US-CC-17-197C
• Format: Word; Rich Text

Description

17-197C 17-197C . . . Indemnification Agreement to be entered into between corporation and its current and future directors and such current and future officers and other agents as directors may designate. The proposal includes description of procedural and substantive matters in Indemnification Agreements that are not addressed, or are addressed in less detail, in California law The District of Columbia Indemnification Agreement is a legal arrangement between a corporation and its current and future directors that provides protection and financial support to directors in case they face legal claims or liabilities arising from their positions within the corporation. This agreement serves to reassure directors and encourages them to perform their duties diligently without the constant fear of personal litigation. Keywords: District of Columbia, indemnification agreement, corporation, current directors, future directors, legal claims, liabilities, protection, financial support, positions, reassurance, diligent, personal litigation. Different types of District of Columbia Indemnification Agreements between corporations and their current and future directors may include: 1. Standard Indemnification Agreement: This type of agreement provides broad indemnification to directors, offering protection against expenses, judgments, fines, settlements, and legal fees incurred while performing their duties. The corporation undertakes to indemnify the director to the fullest extent permitted by law. 2. Advancement Indemnification Agreement: An advancement agreement entitles the director to receive immediate payment or reimbursement of expenses incurred due to legal proceedings. It ensures that directors have access to funds necessary to defend themselves during litigation, even before the legal outcome is determined. 3. Corporate Bylaws Indemnification Provision: Some corporations include an indemnification provision within their bylaws. This provision covers current and future directors and outlines the specific terms and extent of indemnification offered by the corporation. It may include details on the procedure for making indemnification claims, determining eligibility, and resolving disputes. 4. Indemnification Insurance Agreement: In addition to an indemnification agreement, some corporations may opt to obtain directors and officers liability insurance (D&O insurance). This type of agreement provides an additional layer of protection by reimbursing the corporation for indemnification payments made to directors. 5. Executive Employment Contract Indemnification Clause: In cases where a director also holds an executive position, their employment contract may include an indemnification clause. This clause ensures that the director is protected not only as a director but also in their capacity as an executive officer of the corporation. These various types of indemnification agreements reflect the diverse needs of corporations and their directors, offering tailored protection and mitigating potential risks and legal exposure.

The District of Columbia Indemnification Agreement is a legal arrangement between a corporation and its current and future directors that provides protection and financial support to directors in case they face legal claims or liabilities arising from their positions within the corporation. This agreement serves to reassure directors and encourages them to perform their duties diligently without the constant fear of personal litigation. Keywords: District of Columbia, indemnification agreement, corporation, current directors, future directors, legal claims, liabilities, protection, financial support, positions, reassurance, diligent, personal litigation. Different types of District of Columbia Indemnification Agreements between corporations and their current and future directors may include: 1. Standard Indemnification Agreement: This type of agreement provides broad indemnification to directors, offering protection against expenses, judgments, fines, settlements, and legal fees incurred while performing their duties. The corporation undertakes to indemnify the director to the fullest extent permitted by law. 2. Advancement Indemnification Agreement: An advancement agreement entitles the director to receive immediate payment or reimbursement of expenses incurred due to legal proceedings. It ensures that directors have access to funds necessary to defend themselves during litigation, even before the legal outcome is determined. 3. Corporate Bylaws Indemnification Provision: Some corporations include an indemnification provision within their bylaws. This provision covers current and future directors and outlines the specific terms and extent of indemnification offered by the corporation. It may include details on the procedure for making indemnification claims, determining eligibility, and resolving disputes. 4. Indemnification Insurance Agreement: In addition to an indemnification agreement, some corporations may opt to obtain directors and officers liability insurance (D&O insurance). This type of agreement provides an additional layer of protection by reimbursing the corporation for indemnification payments made to directors. 5. Executive Employment Contract Indemnification Clause: In cases where a director also holds an executive position, their employment contract may include an indemnification clause. This clause ensures that the director is protected not only as a director but also in their capacity as an executive officer of the corporation. These various types of indemnification agreements reflect the diverse needs of corporations and their directors, offering tailored protection and mitigating potential risks and legal exposure.