Indemnitor's Remorse: Avoiding Indemnification and Advancement Problems

Companies indemnify and advance expenses to officers, directors and LLC members and managers to protect company representatives and recruit talent. Most of the time, this works well — but what happens when things go wrong? Adam Doerr's session at the North Carolina Bar Association's Business Law Institute highlighted the unintended consequences of indemnification and advancement for transactions, breaches of fiduciary duty, and mismanagement or fraud.