Texas Business Court Clarifies Advancement Rights

In Energy Founders Fund, LP v. Daskevich, the Texas Business Court addressed when a company must pay a director’s legal fees during litigation. The dispute arose out of a drag-along sale at Gage Western LLC. After the board approved the transaction, a director who voted against it allegedly failed to take the steps necessary to transfer his membership units. The investor plaintiff sued, arguing that the units had already been transferred.... By: Jackson Walker