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5 SOURCES OF LIABILITY AND THE CONSEQUENTIAL LOSS: D&O COVERED RISK

Directors' and Officers' Liability Insurance

Page 81 5 SOURCES OF LIABILITY AND THE CONSEQUENTIAL LOSS: D&O COVERED RISK I. THE RELATIONSHIP BETWEEN THE COMPANY AND ITS DIRECTORS 5.1 In terms of defining the relationship between a company and its directors, there are two competing theories, viz . “the “organic” 1 and “agency” theories. English case law has, in the main, endorsed the former. 2

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