The Mainzeal collapse - lesson for directors #3: Director insurance
One of the things the Mainzeal directors will be thankful for is that they took out directors and officers (D&O) liability insurance. If you don't have this as a director, consider it -- even if it doesn't cover everything (it won't cover health & safety fines for example), it will cover your legal costs of dealing with a claim.
But don't just assume that your company is legally able to take out this insurance. Many companies get incorporated without putting a constitution in place.
This can be a problem -- the Companies Act doesn't actually let companies insure or indemnify their directors or employees unless there is an express provision in their constitution allowing this.
It’s a simple fix – the company just needs a package of documents to put in place the constitution and indemnity for its directors and officers. We can do this quickly and easily -- get in touch today if you'd like to find out more.