The Supreme Court of Canada declined to hear the appeal advanced by a number of directors who were denied an advance of their legal costs under an indemnity agreement. On July 4, 2013, the Ontario Court of Appeal found that if a corporation brings an action against a director or officer, section 124(4) of the Canada Business Corporations Actrequires an officer or director to obtain court approval before receiving an advance of legal costs to defend that action under an indemnity agreement. Where a court finds a strong prima facie case that the director or officer has engaged in bad faith dealings, it must deny the advance of legal costs, notwithstanding the terms of any indemnity agreement. (A summary of the Ontario Court of Appeal decision, Cytrynbaum v. Look Communications Inc.2013 ONCA 455, is provided here).