                                 CODE OF VIRGINIA

PAYMENT OF AND SECURITY FOR EXPENSES (§ 13.1-672.5)

On termination of a derivative proceeding, the court may:

1. Order the corporation to pay the plaintiff&#8217;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&#8217;s attorney to pay the
corporation&#8217;s or any defendant&#8217;s expenses incurred in defending the
proceeding if it finds that the proceeding was commenced or maintained
arbitrarily, vexatiously, or not in good faith.

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