172A. Provision of insurance

Question 1

172A. Provision of insurance

Answer 1

Officers’ indemnity insurance
[172A.01] However, a company can purchase and maintain an insurance policy often called “D & O” liability insurance against the liability under s 172(1): s 172A. Note: where the officer fails in the suit for breaches of duty by the company against him, the insurance company will not indemnify him for the legal and incidental costs of defending the action because it would tantamount to an illegal act in promoting an unlawful breaches of duty by the officers.