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Directors' and Officers' Liability Insurance

Page 137 7 DIRECTORS’ LIABILITY AT CIVIL LAW I. INTRODUCTION 7.01 In this chapter we outline how directors’ and officers’ civil liability in civil law jurisdictions may arise in order to ascertain the effectiveness of D&O policies and their reinsurance. As we shall see, overly simplistic translations of the terms “directors” and “officers” into civil law jurisdictions and their corresponding liability principles result in difficulties in light of the variety of rules and differing tests of diligence in existence in civil law systems, and the possibility that in such systems direct liability to third parties may be incurred in a manner not generally recognised by English law.

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