Virginia § 13.1-672.5 Payment of and security for expenses

Virginia Statutes

§ 13.1-672.5 — Payment of and security for expenses

Virginia § 13.1-672.5

Title 13.1Corporations

Ch. 9Virginia Stock Corporation Act

Art. 8.1Derivative Proceedings and Other Shareholder Actions

This text of Virginia § 13.1-672.5 (Payment of and security for expenses) is published on Counsel Stack Legal Research, covering Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Va. Code Ann. § 13.1-672.5 (2026).

Text

On termination of a derivative proceeding, the court may:

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.

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On termination of a derivative proceeding, the court may:

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.