Research On Directors And Officers Liability Insurance

In recent years, civil actions for damages to securities by medium and small investors against public corporations has been brought time after time. With the perfection of related rules and regulations, the number of cases,as well as the amount of claim are increasing. Directors and Officers are facing greater risks.As an insurance which can transfer the risks of directors and offices, Directors and Officers Liability Insurance(referred as D&0 Insurance infra), gained more and more popularity in western countries. The application of D&0 Insurance contracts,compensation and solution is analysed comprehensively both in statutory law and case-law. In the developed countries, especially in the USA, most of the public corporations purchased D&0 Insurance for their Directors and Officers.As an "exotica", D&0 Insurance has to be revised to be in conformity with our law systems. The market environment and legal system environment for D&0 Insurance is still in deficiency in China, such as the deficiency in the system design of extent of protection afforded by an insurance, constructive conditions,exceptions from liability.The construction of any system is based on theory research. So for the perfection of our insurance system and theoretical studies of corporation, it is very important to do a comprehensive research on D&0 Insurance.This paper will focus on the necessity of the establishment of D&0 Insurance,and make some recommendations for the perfection of D&0 Insurance in China.