Are corporate officials entitled to interest on advancement and indemnification obligations owed by the company?
While the statute, 8 Del. C. § 145, does not address the recovery of interest directly, the answer is yes. Delaware Courts have awarded pre-judgment interest on amounts owed by a corporation to its corporate officials. Zaman v. Amedeo Holdings Inc., 2008 Del. Ch. LEXIS 60, at *139 (May 23, 2008).
According to Merritt-Chapman * Scott Corp. v. Wolfson, 321 A.2d 138, 144 (Del. Super. 1974), "without interest on expenses actually paid [by an indemnitee], indemnification would be incomplete." As such, the Court has found that interest begins to accrue when the claim for indemnification is made. May v. Bigmar, Inc., 838 A.2d 285, 292 (Del. Ch. 2003).
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