When officers, directors, employees, and agents incur reasonable legal expenses while acting on behalf of a corporation, the corporation will often:

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When officers, directors, employees, and agents incur reasonable legal expenses while acting on behalf of a corporation, the corporation will often indemnify them. This means that the corporation will cover the cost of the legal expenses incurred by the individuals while they were carrying out their duties on behalf of the corporation. This is meant to protect the individuals from any financial risks associated with performing their duties for the corporation. However, the corporation will not compensate them for these expenses, as they are seen as part of the individuals' responsibilities to the corporation.

When Officers, Directors, Employees, and Agents Incur Reasonable Legal Expenses