Sol is chairman of the board of Tasty Foods Corporation. Uma, a con?sumer, falls sick after eating a Tasty product. Uma sues Tasty, and Sol individu?ally. Tasty may pay Sal's legal fees

Question

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Tasty may pay Sol's legal fees regardless of the outcome as he is the chairman of the board and is being sued individually in connection with his duties to the company. This falls under the concept of indemnification, which allows a company to reimburse its officers or directors for legal expenses incurred while performing their duties on behalf of the company.

Sol Is Chairman of the Board of Tasty Foods Corporation