On termination of a derivative proceeding, the court may:

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Terms Used In Virginia Code 13.1-672.5

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Expenses: means reasonable expenses of any kind that are incurred in connection with a matter. See Virginia Code 13.1-603
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Proceeding: includes civil suit and criminal, administrative, and investigatory action. See Virginia Code 13.1-603

1. Order the corporation to pay the plaintiff‘s expenses incurred in the proceeding if it finds that the proceeding has resulted in a substantial benefit to the corporation; or

2. Order the plaintiff or the plaintiff’s attorney to pay the corporation’s or any defendant‘s expenses incurred in defending the proceeding if it finds that the proceeding was commenced or maintained arbitrarily, vexatiously, or not in good faith.

1992, c. 802; 1993, c. 233; 2019, c. 734.