Directors liability insurance and scope

Directors liability insurance and scope

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Hi All

If a person takes on a Director position for a company are they liable for any past events (nothing criminal!), if they are told about these or not?

A company requires a Director which is essentially no longer trading but is incurring legal costs due to an on going legal dispute between private owners about the ownership, would a new Director assume some level of liability? 

Thanks

Smithie

Replies (7)

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By cheekychappy
08th Feb 2016 14:32

Common sense would tell you no. But is a question that needs to be directed a lawyer.

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By bernard michael
08th Feb 2016 14:35

Why would anyone in the circumstances your outline take the risk of being associated if not liable for the problem?

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By smithie
08th Feb 2016 14:53

The current Director is retiring they haven't been connected to any issues and are actually based overseas, the person is looking for someone to take up the position and is happy to agree to any terms to ring fence the incoming Director but I wanted to know if that was even possible..

 

Thanks

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Replying to User deleted:
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By bernard michael
08th Feb 2016 15:08

Needs clarification

smithie wrote:

The current Director is retiring they haven't been connected to any issues and are actually based overseas, the person is looking for someone to take up the position and is happy to agree to any terms to ring fence the incoming Director but I wanted to know if that was even possible..

 

Thanks

 

What does the major shareholder want or is that the "person" overseas ?

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Replying to DJKL:
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By smithie
08th Feb 2016 15:38

They just want another person to act on the board and no that's not the "person" overseas.

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By bernard michael
08th Feb 2016 15:46

As the company has ceased trading I can't understand why they need another "dummy" to sit on the board unless they are possibly trying to buck pass to the new person. Whoever he/she is they should seek legal advice ( not from the firm acting in the litigation) before accepting any office

At the very least here should be a full disclosure document and a directors' agreement in

place

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By smithie
08th Feb 2016 16:03

Thanks Bernard /All

For the responses

regards

Smithie

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