Study On The Directors’ And Officers’ Liability Insurance

Directors’ and Officers’ Liability Insurance is directors and officers to thecompany or third party civil liability insurance the subject of a professional liabilityinsurance, that is, when the directors or senior staff in the process of carrying outtheir duties due to negligent violation of duty of care causing harm to another shallbe liable for damages, the insurance company to pay compensation in accordancewith the insurance contract, which the director or officer of the risk onto theinsurance company. Directors’ and Officers’ Liability Insurance with thecharacteristics of general liability insurance, but at the same time with other liabilityinsurance, not only has the function of the dispersion directors or senior officers ofresponsibility for the operation risk, while of great significance for improving thecorporate governance structure. The value of Directors’ and Officers’ LiabilityInsurance goal is not only the balance of interests between stakeholders, is toimprove the company’s operating efficiency. January23,2002, The Company ofChina Security Insurance and Chubb Group of Insurance to launch China’s firstDirectors’ and Officers’ Liability Insurance, free gift to Shenzhen Vanke Co., Ltd.,dating back over ten years, however, the current Directors’ and Officers’ LiabilityInsurance in China is still in its infancy, the development is relatively slow, with ourobjective of environmental and legislative level are closely related to the internalreason is that China’s shortcomings with the relevant legislation and external reasonsfor the purchase of environmental underdeveloped. Based on the status of theDirectors’ and Officers’ Liability Insurance, to improve the legislation of theDirectors’ and Officers’ Liability Insurance is necessary, it helps the dispersiondirectors and officers of the business risk, and will promote corporate governancestructures tend to improve, in order to achieve the best value of the company, whilehelp improve our liability system, in order to better maintain the social and economicdevelopment. The concept and nature of the first part of this first clear the Directors’ andOfficers’ Liability Insurance, and then explain the function of directors’ and officers’liability insurance, Finally analysis the value of Directors’ and Officers’ LiabilityInsurance goal. The second part of the first description of the status of directors’responsibility system, and then analyze the shortcomings of the Directors’ andOfficers’ Liability Insurance system. The third part of first examine the common lawof Directors’ and Officers’ Liability Insurance system, citing the typical developmentof several countries, including the United States, Britain, Canada, and then examinethe civil law Directors’ and Officers’ Liability Insurance system, also cited thedevelopment of several countries circumstances, including Germany, France, Japan,and finally described the foreign directors’ and officers’ liability insurance systemenlightenment.The fourth part is to improve our Directors’ and Officers’ LiabilityInsurance system, the shortcomings of the Directors’ and Officers’ LiabilityInsurance system, put forward suggestions for improvement, including supplementthe relevant provisions of the Company Act, the design of the relevant provisionsin the Insurance Act, as well as the specific content of Directors’ and Officers’Liability Insurance system improved.