Study On D&O Insurance System In China

Directors and Officers are always facing with various kinds of risks when theydealing with daily business activities and corporate affairs. With the development ofmarket economy, more and more country reinforce the duty of company’s directorsand officers because their official behavior are of great importance to the companyinterests and its shareholders. However, reinforce duty of the company’s directors andofficers also cannot ensure there will no loss to the company because the managementbehavior is complex activities, on the other hand, it may be will damage their businessenthusiasm which leads to bad influence to the company’s development. Directorsliability insurance system solved this problem, it not only safeguards the director’sinterests, but also promote the development of the company. Our director liabilityinsurance system is developing. The development of legal foundation and theeconomic environment is not fit of the directors liability insurance system. Thedemand of director liability insurance market is not very high.The discussion is divided into four parts: the first part introduces the basic theoryof liability insurance system, and some laws relevant with it; The second partintroduces the need and great importance of the liability insurance system for ourcountry.The third part analyzes director liability insurance system’s current situationand the existing problems in our country.The fourth part puts forward the perfectstrategy based on existing problems of our director liability insurance system.