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Claims or potential claims must be promptly reported.Consult a lawyer for more information on directors’ and officers’ legal liability.
For a comprehensive review of legal liability for directors and officers of not-for-profits, review Industry Canada’s Primer for Directors of Not-for-Profit Corporations. Organizations with paid or volunteer boards should be aware that directors and officers have very specific duties and obligations.
Directors and Officers liability insurance available online from £134. You can protect yourself against this by taking out Directors and Officers Liability Insurance.
In the wake of the initial reports that some companies had suspiciously handed out favorably priced options to executives, the affected stocks tumbled, and analysts started investigating which companies -- and stocks -- would be the next likely suspects.
How would a director or officer fund the legal costs necessary to defend themselves and to meet any awards made against them?
The cover is also tax effective as Directors and Officers liability insurance it is purchased by the Company and is a business expense.
The duty of care and skill, for example, is a common law duty requiring directors to act with “the care an ordinary man would take in the same circumstances on his own behalf”, and with the skill expected from someone with his particular knowledge and experience.
Directors also have a fiduciary duty to act honestly, in good faith and in the best interests of the company and must ensure that there are no conflicts of interest.
This guide is intended to help you safeguard your business by preparing for the unexpected.