{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-672.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-672.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-672.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-672.5.html"}],"law_id":54261,"edition_id":1,"section_id":54261,"structure_id":13262,"section_number":"13.1-672.5","catch_line":"Payment of and security for expenses","history":"1992, c. 802; 1993, c. 233; 2019, c. 734.","full_text":"On termination of a derivative proceeding, the court may:\n\n1\n\nOrder 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; or2\n\nOrder 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.","order_by":null,"text":{"0":{"id":199213,"text":"On termination of a derivative proceeding, the court may:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":199214,"text":"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","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":199215,"text":"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.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1"}},"ancestry":[{"id":13262,"edition_id":1,"name":"Derivative Proceedings and Other Shareholder Actions","identifier":"8.1","label":"article","depth":3,"order_by":1,"parent_id":12983,"metadata":{},"date_created":"2026-06-26 03:44:32","date_modified":"2026-06-26 03:44:32","permalink":{"id":151139,"object_type":"structure","relational_id":13262,"identifier":"8.1","token":"13.1\/9\/8.1","url":"\/13.1\/9\/8.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12983,"edition_id":1,"name":"Virginia Stock Corporation Act","identifier":"9","label":"chapter","depth":2,"order_by":1,"parent_id":12744,"metadata":{},"date_created":"2026-06-26 03:44:06","date_modified":"2026-06-26 03:44:06","permalink":{"id":150163,"object_type":"structure","relational_id":12983,"identifier":"9","token":"13.1\/9","url":"\/13.1\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12744,"edition_id":1,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":147493,"object_type":"structure","relational_id":12744,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":54967,"structure_id":13262,"section_number":"13.1-672.1","catch_line":"Standing; condition precedent; stay of proceedings","url":"\/13.1-672.1\/","token":"13.1\/9\/8.1\/13.1-672.1","metadata":false},{"id":83444,"structure_id":13262,"section_number":"13.1-672.2","catch_line":"Discontinuance or settlement","url":"\/13.1-672.2\/","token":"13.1\/9\/8.1\/13.1-672.2","metadata":false},{"id":75549,"structure_id":13262,"section_number":"13.1-672.3","catch_line":"Foreign corporations","url":"\/13.1-672.3\/","token":"13.1\/9\/8.1\/13.1-672.3","metadata":false},{"id":78141,"structure_id":13262,"section_number":"13.1-672.4","catch_line":"Dismissal","url":"\/13.1-672.4\/","token":"13.1\/9\/8.1\/13.1-672.4","metadata":false},{"id":54261,"structure_id":13262,"section_number":"13.1-672.5","catch_line":"Payment of and security for expenses","url":"\/13.1-672.5\/","token":"13.1\/9\/8.1\/13.1-672.5","metadata":false},{"id":73185,"structure_id":13262,"section_number":"13.1-672.6","catch_line":"Shareholder action to appoint a custodian or receiver for a public corporation","url":"\/13.1-672.6\/","token":"13.1\/9\/8.1\/13.1-672.6","metadata":false},{"id":69015,"structure_id":13262,"section_number":"13.1-672.7","catch_line":"Shareholder defined","url":"\/13.1-672.7\/","token":"13.1\/9\/8.1\/13.1-672.7","metadata":false}],"previous_section":{"id":78141,"structure_id":13262,"section_number":"13.1-672.4","catch_line":"Dismissal","url":"\/13.1-672.4\/","token":"13.1\/9\/8.1\/13.1-672.4","metadata":false},"next_section":{"id":73185,"structure_id":13262,"section_number":"13.1-672.6","catch_line":"Shareholder action to appoint a custodian or receiver for a public corporation","url":"\/13.1-672.6\/","token":"13.1\/9\/8.1\/13.1-672.6","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-672.5\/","history_text":"

This law was first created in 1992. The record of its establishment is cataloged in chapter 802 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1992 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1993, chapter 233; in 2019, chapter 734<\/a>.<\/p>","references":[{"id":75549,"section_number":"13.1-672.3","catch_line":"Foreign corporations","order_by":null,"url":"\/13.1-672.3\/"}],"refers_to":false,"permalink":{"id":151157,"object_type":"law","relational_id":54261,"identifier":"13.1-672.5","token":"13.1\/9\/8.1\/13.1-672.5","url":"\/13.1-672.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-672.5\/","token":"13.1\/9\/8.1\/13.1-672.5","dublin_core":{"Title":"Payment of and security for expenses","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-672.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

On termination of a derivative proceeding<\/span>, the court<\/span> may:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Order<\/span> the corporation<\/span> to pay the plaintiff<\/span>’s expenses<\/span> incurred in the proceeding if it finds that the proceeding has resulted in a substantial benefit to the corporation<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Order<\/span> the plaintiff<\/span> or the plaintiff<\/span>’s attorney to pay the corporation<\/span>’s or any defendant<\/span>’s expenses<\/span> incurred in defending the proceeding if it finds that the proceeding was commenced or maintained arbitrarily, vexatiously, or not in good faith. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPAYMENT OF AND SECURITY FOR EXPENSES (\u00a7 13.1-672.5)\n\nOn termination of a derivative proceeding, the court may:\n\n1. Order the corporation to pay the plaintiff’s expenses incurred in the\nproceeding if it finds that the proceeding has resulted in a substantial benefit\nto the corporation; or\n\n2. Order the plaintiff or the plaintiff’s attorney to pay the\ncorporation’s or any defendant’s expenses incurred in defending the\nproceeding if it finds that the proceeding was commenced or maintained\narbitrarily, vexatiously, or not in good faith.\n\nHISTORY: 1992, c. 802; 1993, c. 233; 2019, c. 734.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}