A director who becomes involved in litigation because of his or her position has no right to be indemnified for the costs.

Question

marcc tommy · Accepted Answer

Final Answer : False, Explanation :  Directors may have the right to be indemnified for the costs associated with litigation arising from their position, depending on the company's bylaws, indemnification agreements, and applicable laws.

A director who becomes involved in litigation because of his or her position has no right to be indemnified for the costs.

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