§ 1.7.5.4 COURT ORDERED INDEMNIFICATION.

• Jurisdiction: Arizona

§ 1.7.5.4 Court Ordered Indemnification. Under A.R.S. § 10-854, unless it is otherwise provided by a corporation's articles of incorporation, a director who is a party to a proceeding may apply for indemnification or an advancement of expenses in the court that is conducting the proceeding or in another court of competent jurisdiction.⁴⁵ The court, after notice, may order indemnification or an advancement of expenses if it determines either: (1) that the director is entitled to mandatory indemnification under A.R.S. § 10-852, in which case it must also order the corporation to pay the director's reasonable expenses incurred to obtain court ordered indemnification, or (2) that the director is "fairly and reasonably entitled to indemnification in view of all of the relevant circumstances," regardless of whether he or she has met the good faith...