Directors' Liability: Protecting Personal and Corporate Assets
Running a business means balancing strategic decisions, risk management and compliance with legal regulations. Directors, members of management, auditors and board of directors (D&O) bodies are key figures in this process, and their decisions can have significant consequences both for the company and for themselves on a personal level. It is crucial to understand the scope of their responsibilities and take appropriate protective measures.
The law requires board members to be liable to the company, shareholders and creditors for damages caused by willful or negligent breaches of their duties. Areas of liability include incorporation, administration, management, liquidation, auditing, and issuance prospectuses, as stipulated in the Bond Code.
D&O insurance solutions offered by Ares Insurance Services not only protect directors' personal assets, but also help safeguard the company's reputation. Key benefits include:
- Coverage of Legal Expenses: incurred to defend against allegations of mismanagement.
- Financial Loss Indemnification: in the event of a conviction, the policy covers financial losses resulting from directors' decisions.
- Protection for Directors and Executives: ensures that directors and management can make strategic decisions without fear of personal repercussions.
- Attractiveness for Talent: adequate insurance coverage makes the company more attractive to talented directors and executives by ensuring that top professionals are willing to join the board.