Research On The Development Of Directors Liability Insurance In China

In order to establish an effective capital market with transparent information,management norms and risk diversification,it is necessary to solve the problems of information asymmetry and moral hazard by means of more corporate governance.Therefore,the use of directors liability insurance has also been explored.In August 2001 Chinese Commission issued "on the establishment of independent directors system in listed companies guidance",the opinion clearly stipulates that "the listed companies can establish the necessary independent director liability insurance system,to reduce the risk of independent directors to perform their duties properly may cause."Directors(Executive)liability insurance is a new type of liability insurance,it was born in the United States after the 1929 economic crisis.Compensation for compensation for the loss of the shareholders' rights and interests of the company's executives and directors because of business failure,the shareholders should be sued for compensation.The board of directors liability insurance has its unique advantages in the transfer of the company and the directors many risks and protect the interests of shareholders,the third party victims can obtain the deserved rights by virtue of this insurance,the stability of China's economic and social development and the formation of a good social order is very useful,so promoting the development of liability insurance for directors is significant.This paper discusses the insurance liability of directors to the subject of subtle behavior as the theme,because this risk involves many stakeholders,coupled with the company's separation of ownership and management,which involves serious agency problems,so there is an urgent need for the purchase of directors liability insurance of any changes to the board of directors,the domestic shortage of this study provides enough research space for this paper.The main content of this paper is as a starting point for the board of directors behavior and decision-making model of the directors liability insurance,firstly combed the research achievements at home and abroad in recent years,combined with the actual situation of China's development of liability insurance for directors in recent years,through the influence of purchase by game theory research board of liability insurance for directors' behavior,and to explore the relationship between the board of directors liability insurance and behavior.Finally,combined with the development experience of foreign advanced countries as a macro theoretical guidance,the research results have a reference role to improve the development of directors liability insurance and to realize the theoretical innovation of liability insurance.