Directors and Officers

 

Your Duties

Directors' duties are set out in a raft of case law, legislation and regulations. It is hardly surprising, therefore, that some directors are unaware of their duties. However, ignorance of the law is no excuse. The most common areas under which claims are brought against a company director include health and safety, employment legislation, libel, slander and regulatory changes.

 

What can happen?

To give an example, if a former employee was to name a company director personally in a claim for unfair dismissal, even if the claim was unsuccessful, the legal costs incurred in defending that director could run to thousands of pounds.

 

Protect yourself

The best protection for directors is to be aware of their duties, keep abreast of legislative and regulatory developments and to arrange Directors and Officers Liability insurance. This insurance covers the legal liability of directors and officers in respect of claims against them, including the legal costs and expenses incurred in the defence of a claim arising from their actions and decisions made on behalf of the company in their capacity as a director or officer.