Director’s Liability Insurance Whilst this can and does provide protection for claims against directors, it does not and cannot cover the payment of e.g. regulatory fines levied on a director – he must pay them himself. Summary Directors are not intended to be guarantors of a company’s success. The statutory obligation is that directors act in the way they consider would be most likely to promote the success of the company for the benefit of its members as a whole. Courts and policy makers alike have acknowledged that directors are in control of an entrepreneurial venture and that a degree of commercial risk-taking is a necessary part of earning a sufficient return on the capital invested. Further, it has long been accepted that directors are not liable for mere errors of judgement nor will a director be disqualified from holding office on the grounds of “ordinary commercial misjudgement”. The holding of regular board and other management meetings and reviews, accompanied by clear minutes, have proved in practice to be the best evidence of the steps the directors took, and why.
Director’s Liability Insurance Whilst this can and does provide protection for claims against directors, it does not and cannot cover the payment of e.g. regulatory fines levied on a director – he must pay them himself. Summary Directors are not intended to be guarantors of a company’s success. The statutory obligation is that directors act in the way they consider would be most likely to promote the success of the company for the benefit of its members as a whole. Courts and policy makers alike have acknowledged that directors are in control of an entrepreneurial venture and that a degree of commercial risk-taking is a necessary part of earning a sufficient return on the capital invested. Further, it has long been accepted that directors are not liable for mere errors of judgement nor will a director be disqualified from holding office on the grounds of “ordinary commercial misjudgement”. The holding of regular board and other management meetings and reviews, accompanied by clear minutes, have proved in practice to be the best evidence of the steps the directors took, and why.
Guide-for-incorporation-of-golf-clubs.docx