Provides directors, officers and trustees with the resources to defend allegation or mismanagement.
Costs of investigating and defending claims and allegations made against directors, officers and or trustees
Any amounts paid as damages or settlements as a result of these claims or allegations where you are representing the Church as a director, trustee or office of an Outside Entity.
A freight forwarding company went into liquidation. An unsecured creditor brought proceedings against the directors alleging breach of duty under the Companies Act (1993). The directors, who were not involved in the day to day running of the business, argued that they relied on information supplied by the managing director.
The court held that they could not rely on that defence as they knew the company had traded at a significant loss, and there was enough information available to realise the danger of continuing to trade.
The directors were found to have breached their duty. Each director was individually liable for $250,000 which was paid to the company’s creditors by the liquidator.