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Citadel Holding Corporation v. Roven
Citation:603 A.2d 818 (Del. 1992)
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Citadel, a savings and loan holding company, is a Delaware corporation. Roven was a director of Citadel from July, 1985 to July, 1988. He owned 9.8 percent of Citadel’s common stock. In May 1987, Citadel and Roven entered into an Indemnity Agreement with the purpose of providing Roven with protection. Roven’s claim for indemnification and reimbursement was prompted by a suit brought by Citadel against him. In that proceeding, Citadel alleged that Roven violated the Securities and Exchange Act of 1934 by purchasing certain options to buy Citadel stock while he was a director.
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