{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/13.1-878.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/13.1-878.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/13.1-878.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/13.1-878.html"}],"law_id":68983,"edition_id":1,"section_id":68983,"structure_id":14482,"section_number":"13.1-878","catch_line":"Advance for expenses","history":"Code 1950, \u00a7 13.1-205.1; 1968, c. 689; 1975, c. 500; 1981, c. 57; 1985, c. 522; 2007, c. 925; 2010, c. 171; 2015, c. 611.","full_text":"A\n\nA corporation may pay for or reimburse the reasonable expenses incurred by a director who is a party to a proceeding in advance of final disposition of the proceeding if the director furnishes the corporation a signed written undertaking, executed personally or on his behalf, to repay any funds advanced if he is not entitled to mandatory indemnification under § 13.1-877 and it is ultimately determined under § 13.1-879.1 or 13.1-880 that he has not met the relevant standard of conduct.B\n\nThe undertaking required by subsection A shall be an unlimited general obligation of the director but need not be secured and may be accepted without reference to financial ability to make repayment.C\n\nAuthorizations of payments under this section shall be made by:1\n\nThe board of directors:\n\t\t\t\ta. If there are two or more disinterested directors, by a majority vote of all the disinterested directors, a majority of whom shall for such purpose constitute a quorum, or by a majority of the members of a committee of two or more disinterested directors appointed by such a vote; or\n\t\t\t\tb. If there are fewer than two disinterested directors, by the vote necessary for action by the board in accordance with subsection C of § 13.1-868, in which authorization directors who do not qualify as disinterested directors may participate; or2\n\nThe members, but any membership interest under the control of a director who at the time does not qualify as a disinterested director may not be voted on the authorization.","order_by":null,"text":{"0":{"id":249705,"text":"A corporation may pay for or reimburse the reasonable expenses incurred by a director who is a party to a proceeding in advance of final disposition of the proceeding if the director furnishes the corporation a signed written undertaking, executed personally or on his behalf, to repay any funds advanced if he is not entitled to mandatory indemnification under § 13.1-877 and it is ultimately determined under § 13.1-879.1 or 13.1-880 that he has not met the relevant standard of conduct.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":249706,"text":"The undertaking required by subsection A shall be an unlimited general obligation of the director but need not be secured and may be accepted without reference to financial ability to make repayment.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":249707,"text":"Authorizations of payments under this section shall be made by:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":249708,"text":"The board of directors:\n\t\t\t\ta. If there are two or more disinterested directors, by a majority vote of all the disinterested directors, a majority of whom shall for such purpose constitute a quorum, or by a majority of the members of a committee of two or more disinterested directors appointed by such a vote; or\n\t\t\t\tb. If there are fewer than two disinterested directors, by the vote necessary for action by the board in accordance with subsection C of § 13.1-868, in which authorization directors who do not qualify as disinterested directors may participate; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":249709,"text":"The members, but any membership interest under the control of a director who at the time does not qualify as a disinterested director may not be voted on the authorization.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1"}},"ancestry":[{"id":14482,"edition_id":1,"name":"Indemnification","identifier":"9","label":"article","depth":3,"order_by":1,"parent_id":13004,"metadata":{},"date_created":"2026-06-26 03:48:17","date_modified":"2026-06-26 03:48:17","permalink":{"id":148235,"object_type":"structure","relational_id":14482,"identifier":"9","token":"13.1\/10\/9","url":"\/13.1\/10\/9\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13004,"edition_id":1,"name":"Virginia Nonstock Corporation Act","identifier":"10","label":"chapter","depth":2,"order_by":1,"parent_id":12744,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":147501,"object_type":"structure","relational_id":13004,"identifier":"10","token":"13.1\/10","url":"\/13.1\/10\/","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":56361,"structure_id":14482,"section_number":"13.1-875","catch_line":"Definitions","url":"\/13.1-875\/","token":"13.1\/10\/9\/13.1-875","metadata":false},{"id":81318,"structure_id":14482,"section_number":"13.1-876","catch_line":"Authority to indemnify","url":"\/13.1-876\/","token":"13.1\/10\/9\/13.1-876","metadata":false},{"id":74253,"structure_id":14482,"section_number":"13.1-877","catch_line":"Mandatory indemnification","url":"\/13.1-877\/","token":"13.1\/10\/9\/13.1-877","metadata":false},{"id":68983,"structure_id":14482,"section_number":"13.1-878","catch_line":"Advance for expenses","url":"\/13.1-878\/","token":"13.1\/10\/9\/13.1-878","metadata":false},{"id":59957,"structure_id":14482,"section_number":"13.1-879","catch_line":"Repealed","url":"\/13.1-879\/","token":"13.1\/10\/9\/13.1-879","metadata":false},{"id":85348,"structure_id":14482,"section_number":"13.1-879.1","catch_line":"Court orders for advances, reimbursement or indemnification","url":"\/13.1-879.1\/","token":"13.1\/10\/9\/13.1-879.1","metadata":false},{"id":78320,"structure_id":14482,"section_number":"13.1-880","catch_line":"Determination and authorization of indemnification","url":"\/13.1-880\/","token":"13.1\/10\/9\/13.1-880","metadata":false},{"id":72562,"structure_id":14482,"section_number":"13.1-881","catch_line":"Indemnification of officers","url":"\/13.1-881\/","token":"13.1\/10\/9\/13.1-881","metadata":false},{"id":55875,"structure_id":14482,"section_number":"13.1-882","catch_line":"Insurance","url":"\/13.1-882\/","token":"13.1\/10\/9\/13.1-882","metadata":false},{"id":59006,"structure_id":14482,"section_number":"13.1-883","catch_line":"Application of article","url":"\/13.1-883\/","token":"13.1\/10\/9\/13.1-883","metadata":false}],"previous_section":{"id":74253,"structure_id":14482,"section_number":"13.1-877","catch_line":"Mandatory indemnification","url":"\/13.1-877\/","token":"13.1\/10\/9\/13.1-877","metadata":false},"next_section":{"id":59957,"structure_id":14482,"section_number":"13.1-879","catch_line":"Repealed","url":"\/13.1-879\/","token":"13.1\/10\/9\/13.1-879","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-878\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 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 1968, chapter 689; in 1975, chapter 500; in 1981, chapter 57; in 1985, chapter 522; in 2007, chapter 925<\/a>; in 2010, chapter 171<\/a>; in 2015, chapter 611<\/a>.<\/p>","references":[{"id":65210,"section_number":"13.1-803","catch_line":"Definitions","order_by":null,"url":"\/13.1-803\/"},{"id":59006,"section_number":"13.1-883","catch_line":"Application of article","order_by":null,"url":"\/13.1-883\/"}],"refers_to":[{"id":55069,"section_number":"13.1-868","catch_line":"Quorum and voting by directors","order_by":null,"url":"\/13.1-868\/"},{"id":74253,"section_number":"13.1-877","catch_line":"Mandatory indemnification","order_by":null,"url":"\/13.1-877\/"},{"id":85348,"section_number":"13.1-879.1","catch_line":"Court orders for advances, reimbursement or indemnification","order_by":null,"url":"\/13.1-879.1\/"},{"id":78320,"section_number":"13.1-880","catch_line":"Determination and authorization of indemnification","order_by":null,"url":"\/13.1-880\/"}],"permalink":{"id":148249,"object_type":"law","relational_id":68983,"identifier":"13.1-878","token":"13.1\/10\/9\/13.1-878","url":"\/13.1-878\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/13.1-878\/","token":"13.1\/10\/9\/13.1-878","dublin_core":{"Title":"Advance for expenses","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-878","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A corporation<\/span> may pay for or reimburse the reasonable expenses<\/span> incurred by a director<\/span> who is a party<\/span> to a proceeding<\/span> in advance of final disposition<\/span> of the proceeding<\/span> if the director<\/span> furnishes the corporation<\/span> a signed written<\/span> undertaking, executed personally or on his behalf, to repay any funds advanced if he is not entitled to mandatory indemnification under § 13.1-877<\/a> and it is ultimately determined under § 13.1-879.1<\/a> or 13.1-880<\/a> that he has not met the relevant standard of conduct. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The undertaking required by subsection A shall be an unlimited general obligation of the director<\/span> but need not be secured and may be accepted without reference to financial ability to make repayment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Authorizations of payments under this section shall be made by: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The board of directors<\/span>:\n\t\t\t\ta. If there are two or more disinterested directors<\/span>, by a majority vote of all the disinterested directors<\/span>, a majority of whom shall for such purpose constitute a quorum, or by a majority of the members<\/span> of a committee of two or more disinterested directors<\/span> appointed by such a vote; or\n\t\t\t\tb. If there are fewer than two disinterested directors<\/span>, by the vote necessary for action by the board in accordance with subsection C of § 13.1-868<\/a>, in which authorization directors who do not qualify as disinterested directors<\/span> may participate; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The members<\/span>, but any membership interest<\/span> under the control of a director who at the time does not qualify as a disinterested director<\/span> may not be voted on the authorization. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nADVANCE FOR EXPENSES (\u00a7 13.1-878)\n\nA. A corporation may pay for or reimburse the reasonable expenses incurred by a\ndirector who is a party to a proceeding in advance of final disposition of the\nproceeding if the director furnishes the corporation a signed written\nundertaking, executed personally or on his behalf, to repay any funds advanced\nif he is not entitled to mandatory indemnification under § 13.1-877 and it\nis ultimately determined under § 13.1-879.1 or 13.1-880 that he has not met\nthe relevant standard of conduct.\n\nB. The undertaking required by subsection A shall be an unlimited general\nobligation of the director but need not be secured and may be accepted without\nreference to financial ability to make repayment.\n\nC. Authorizations of payments under this section shall be made by:\n\n 1. The board of directors:\n \t\t\t\ta. If there are two or more disinterested directors, by a majority vote of\n all the disinterested directors, a majority of whom shall for such purpose\n constitute a quorum, or by a majority of the members of a committee of two or\n more disinterested directors appointed by such a vote; or\n \t\t\t\tb. If there are fewer than two disinterested directors, by the vote\n necessary for action by the board in accordance with subsection C of §\n 13.1-868, in which authorization directors who do not qualify as disinterested\n directors may participate; or\n\n 2. The members, but any membership interest under the control of a director\n who at the time does not qualify as a disinterested director may not be voted\n on the authorization.\n\nHISTORY: Code 1950, \u00a7 13.1-205.1; 1968, c. 689; 1975, c. 500; 1981, c. 57;\n1985, c. 522; 2007, c. 925; 2010, c. 171; 2015, c. 611.","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}}