Research On The Director’s & Officer’s Liability Insurance In China

The coverage rate of Director’s & Officer’s Liability Insurance in foreign capital market is rising steadily,which plays a significant role in modern corporate governance and liability risk prevention.It has been 20 years since the introduction of Director’s & Officer’s Liability Insurance in China,but there is a big gap between its development trend,current position and functions expected to perform.With the improvement of the legal system,the accountability of the regulatory authorities to the company’s management personnel has been strengthened.Also,the securities civil compensation litigation has gotten on curse and the litigation system of securities representative has been formally implemented.In the near future,the occupational risk of company management personnel is increasing,which needs the protection of Director’s & Officer’s Liability Insurance.However,there are some defects in the existing system of this kind of insurance in our country,and its disadvantages appear constantly in practice.So,it is of great practical significance to improve our regulation system design in time.The purpose of this paper is to put forward suggestions on improving and developing the Director’s &Officer’s Liability Insurance system in China from the perspective of legislative design and key system arrangement by compare,in order to adapt to the current situation of China as soon as possible and show its positive effect in China’s market.