The Research On Legal System Of Directors & Officers' Liability Insurance

This thesis's main focus is that directors and officers' liability insurance (D&O insurance) is designed to prevent directors and officers from liability for the third party. The liability comes from directors and officers' wrongful acts when they do their duties. D&O insurance plays a positive role in balancing the interest among the corporation, directors and investors as well as promoting the harmonious development of the society, so it is necessary to pursue the kind of insurance in our country.Unfortunately, during the past 4 years of we carrying out it, due to the lack of the directors' liability for the third party , the directors have no chance to pay for the loss of the investors. Naturally, there is no need for decentralizing the directors' professional risks.But now, things changed. The Civil Liability System is becoming more and more perfect, as a result, the D&O insurance is likely to get rid of trouble and to function well. Meanwhile, in order to realize the substance justice, the modern Tort Law, which is aim at transferring damage and dispersing risks , demands the D&O insurance to take an important part in modern society. There is no doubt that together with the democratization of politics, D&O insurance will finally own a brighter future.The main terms of D&O insurance contracts include insurance coverage ? insurers' exclusive liability and the distribution of insurance premium, etc. The concepts of some words such as the insurees, damage and wrongful acts are also important terms in the contract. They are helpful to define the insurance coverage, so it is necessary to be clear about their definitions and the agreements of the both sides.While transplanting the system of D&O insurance, we should not only pay attention to the balance of restraints and encouragements, but also remember that to use for reference should be accompanied with the environments in China.