Galen and Leslie are directors, but not officers, of Tropical Travels, Inc. Tropical Travels becomes embroiled in a controversy over airline kickbacks. As directors, Galen and Leslie can be named in any lawsuit that may result from the company's actions. Because of their right of:______. a) participation, they will be allowed to participate fully in the legal proceedings. b) inspection, they have access to all the company documents that are necessary for the legal proceedings. c) indemnification, the company may reimburse them for legal fees and judgments. d) compensation, they have been adequately paid in the event that they require legal representation.

Directors and sometimes officers usually sign/have INDEMNITY AGREEMENTS or Clauses with their companies to reduce or erase legal liability they may incur in the service to the company.

This practice is now quite widespread especially in view of the increased costs of litigation and settlement costs.

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fichoh fichoh · Answer 2 · 2020-03-20T04:33:17+01:00

Answer: c) indemnification, the company may reimburse them for legal fees and judgments.

Explanation:Galen and Leslie most probably has an indemnification agreement with the company, which is a legal agreement that protects both Galen and Leslie from actions or conducts of the airline company. It also involves protecting directors from personal liability brought over them or incurred on behalf of the government. Therefore, Galen and Leslie may be reimbursed for legal fees and judgments as they are not meant to shoulder the company's financial obligation.