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Home Q&A Forum C corp and indemnification?

Litigation

C Corp

Ohio

Asked on May 28, 2023

C corp and indemnification?

I am the CEO of a small C Corp. Recently, my company has been sued by a customer for a breach of contract. I am concerned about the potential financial and legal implications of this lawsuit and want to understand the rules and regulations around C Corp and indemnification. In particular, I am interested in understanding how C Corp indemnification works and what I can do to protect myself and my company from liability.

1 Attorney answer

Answer

Litigation

Ohio

Answered 384 days ago

Paul S.

ContractsCounsel verified

Business Lawyer
Licensed in California, Ohio
Free Consultation

Depending on the state where the company is incorporated, indemnification of directors and officers may be mandatory. In any case, indemnification only comes into play if this customer has named you personally as a defendant in the lawsuit. If the customer has done so, and you were acting in good faith within your role as a director or officer, the company should pay all your expenses in defending yourself, and any judgment against you if you lose. Of course, you should be hiring an attorney to defend the company (and you, if you are named) in this lawsuit. It's not a good DIY project.

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