Insurance for Directors and Managers
Directors and officers bear responsibility for the organizations they oversee. They have an obligation to act in good faith and in the best interests of the organization, whether it's a charity or a for-profit business.
L'importance d'être bien assuré
As a director or board manager, you can potentially face personal liability in case of an unfavorable decision or unwarranted dismissal of an employee. AFER Group Ltd. can provide coverage for directors' and officers' civil liability.
What is it about ?
Duty
Directors and officers are obligated to exercise reasonable care in overseeing their company's activities. They must act in good faith and in the company's best interests. Directors can face personal lawsuits due to these three fundamental roles:
- Duty of care (duty of prudence): Act reasonably, in good faith, in the best interests of the company.
- Duty of loyalty : Place the interests of the company ahead of those of directors and officers.
- Duty of obedience : Act according to the possibilities of the company, respecting the rules and applicable laws.
Legal liability
Directors and officers may be responsible for the following:
- Failure to adhere to the requirements of a law, such as neglecting to produce a report or maintain specific records up to date, can result in them being held accountable for violating the law.
- The company's failure to comply with a law can have various consequences. For instance, directors may be held accountable for mismanagement, financial losses, unwarranted dismissals, discrimination (whether it's moral or physical) against an employee, or the failure to implement measures to remediate environmental damage.
It is important to note that…
- Directors and managers can be held personally liable and they involve their personal assets.
- Ignorance is no defense.
- Resignation is not necessarily an acceptable defense.
- Board compensation may not be enough.
- Directors and officers may be liable for non-performance.
What is it about ?
Bankruptcy – Statutory Liability
Class action – Negligence
Inaccurate statements
Class action by shareholders
Employment practice
Inaccurate statements