Director's and officers' liability - CIM insurance Director's and officers' liability - CIM insurance
Corporate products
Director's and Officer's Liability
Directors and officers of a company hold a position of trust and are responsible towards the company, the shareholders, the employees, and the public at large. They may become liable to pay damages in certain cases such as the following:
Mis-statement in prospectus
Inaccurate statement of financial conditions
Errors in annual accounts
Conflicts of interest
Lack of judgment, diligence, good faith
Mismanagement of funds
Unfair allotment of shares
Using insider information
Unwarranted dividend, salary, compensation payments
Unfair dismissal of an employee
   
Our policy is written in two sections:
The Director's and Officer's Liability Section indemnifies the directors and officers in respect of any ‘Wrongful Act’ committed in their capacity as directors and officers of the company, where the company is not permitted (either legally, or by its articles of association) to reimburse them.
   
The company reimbursement section covers the company only in respect of any reimbursement that it is required, or permitted by law, to make to its directors and officers against whom a legal action has been sought.