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Directors and officers liability insurance (also written directors' and officers' liability insurance; [1] often called D&O) is liability insurance payable to the directors and officers of a company, or to the organization itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for ...
Any loss caused to the company by wrong statements must be compensated for, but this is a sanction that only the company (i.e., no groups except the board of directors or company members with the power to bring derivative claims) can sue for, and liability only arises for an intentional or reckless act, or a dishonest omission.
Directors' duties are a series of statutory, common law and equitable obligations owed primarily by members of the board of directors to the corporation that employs them. It is a central part of corporate law and corporate governance. Directors' duties are analogous to duties owed by trustees to beneficiaries, and by agents to principals.
Financial statement; ... and that the liabilities of the company were separate and ... It is a principle of corporate law that the directors of a company have the ...
An Act to amend the law relating to company auditors and accounts, to the provision that may be made in respect of certain liabilities incurred by a company’s officers, and to company investigations; to make provision for community interest companies; and for connected purposes. Citation: 2004 c 27: Territorial extent
If this turns out to be a negligent statement, the director can be sued. But this means it is hard to claw back any profits from shareholders if a company does indeed go insolvent, if the director's statement appeared good at the time. If not all the directors are prepared to make a solvency statement, the company may apply to court for a decision.
In the United Kingdom, a public limited company usually must include the words "public limited company" or the abbreviation "PLC" or "plc" at the end and as part of the legal company name. Welsh companies may instead choose to end their names with ccc , an abbreviation for cwmni cyfyngedig cyhoeddus . [ 2 ]
Corporate liability, also referred to as liability of legal persons, determines the extent to which a company as a legal person can be held liable for the acts and omissions of the natural persons it employs and, in some legal systems, for those of other associates and business partners.