A Research Of D&O Liability System

With China's entrance into WTO, the Chinese economy has gradually blended into the world economy. As an important part of the modern corporate system, the D&O liability insurance will play an active role in strengthening the corporate governance in our country. However, there is no denying that we have not sound corporate law system up to now and the division of professional liability of the directors and senior officers is also very vague, beside this, the consciousness of investor is very faint to stand up for their rights, which made the senior managers in the listed companies overlook the huge potential professional liability risk and depreciate their demand to purchase the D&O liability insurance. So recent years it shows a slow growth in this market.Referring to the law provision in the western countries and the related case analysis, this article takes the D&O liability insurance system as an object of study, and makes a useful simplification of the evolution of D&O liability insurance, the civil liability of D&O, the D&O liability contract and corporate indemnification system. Based on the reality of the corporate governess structure and the related development of law establishment, it also put forward several constructive opinions on the further development of D&O liability system in our country.