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ARTICLE · 23 JUNE 2008

Directors´ Insurance And Indemnity Protection In A Takeover

Clayton Utz
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A takeover bid for a company can affect the company's D&O insurance. Directors of target companies should know what those effects are - and how they can be mitigated.

AustraliaInsurance
Darryl McDonough
Darryl McDonough
Mark Waller
Mark Waller
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Key Points

  • A takeover bid for a company can affect the company's D&O insurance.
  • Directors of target companies should know what those effects are - and how they can be mitigated.

You're a director of a listed company. The company has D&O cover. Maybe you have a personal indemnity from the company, as well.

One afternoon, your share price suddenly takes off. It quickly becomes clear that your company is about to be a takeover target.

D&O cover and directors' indemnities are the last thing on your mind.

They shouldn't be.

If successful, the predator not only gains outright control of the company, but also potentially controls the indemnities and D&O policies upon which you may need to rely at some later time.

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