Directors’ and officers’ insurance: coverage for misleading statements

Murray Goulburn Cooperative Co Ltd v AIG Australia Ltd [2021] FCA 288 concerned the proper construction of “sideC” cover in a directors’ and officers’ policy, ie, cover for the company’s own direct liability to third parties rather than cover for the liability incurred by the directors. Beach J in the Federal Court of Australia rejected a series of defences raised by the insurers in respect of class actions against the assured company by purchasers of its securities.

The facts