A Research On Development Of Directors’ Liability Insurance In China

The healthy and orderly development of the investment market is an important guarantee for social and economic development, and it is also related to the improvement of people’s living standards. The vicissitude of investment market is associated with whether it can ensure the investors’ interests. When the enterprises operate at a loss, the directors’ liability insurance can just right ensure the investors’ interests and help reduce their losses. Compared with the directors’ liability insurance of other countries, our directors’ liability insurance started later, the related law is less sound, and the social popularity of it is lower.The provision of the directors’ liability insurance doesn’t correspond with our national conditions, the law is not sound and people lack awareness of the director liability insurance. All of these hinder the development of the directors’ liability insurance. How to develop the directors’ liability insurance has a major connection with the investors’ interests. Developing the directors’ liability insurance can better guarantee the interests of the investors, helps to reduce the pressure of the company’s debts, and is conducive to the innovation of the company and the social stability and development.The improvement of the directors’ liability insurance can help to benefit the nation and the people, and it is of great significance.Apart from the introduction, this thesis also includes four parts. The first section describes the development and its significance of the directors’ liability insurance. The first warranty of the directors’ liability insurance started in 1930, and with its gradual development its was first accepted in Britain and US. Then it further developed in Japan, but with many setbacks and problems, such as abusing the litigation of shareholders. This section expounds the significance mainly from the aspects of promoting innovation, maintaining the interests of shareholders, stepping up the improvement of laws and regulations, strengthening supervision. The second section is about the reality, problems and analysis of our directors’ liability insurance. Now many insurance companies, including Ping An, Huatai, AIU and PICC, have launched the directors’ liability insurance, but by October 2010 its insurance rate the listed companies insured was only about 5%, which is lagged far behind compared with 97% of US and 88% of Singapore. Problems are analyzed mainly from the aspects of the company structure, the drawback of laws and regulations, the laying down of laws and provisions. The third section analyzes the features of the directors’ liability insurance in Germany, US and Japan and gets some enlightenment from them, such as improving the civil case indemnificaion system, optimizing the company structures and accommodating insurance contracts. In the last section, many suggestions are put forward, including the combination of protecting shareholders’ interests and preventing the abuse of power, reasonably sharing the responsibility of litigation costs and strengthening propagandism of the directors’ liability insurance.