Key Points:
Officers who want the most comprehensive protection
should insist upon a deed of indemnity.
Directors and officers are subject to numerous legal duties and
obligations. Navigating this legal maze is often not a
straightforward process for even the most diligent officers.
Officers who breach their duties are at risk of being held
personally liable. There are essentially three ways of mitigating
the risk:
- meticulous care and attention to duties (goes without
saying);
- deeds of access and indemnity from the Company (subject to
legal constraints and capacity to pay); and
- insurance.
In light of the recent case of Leckenby v Note Printing
Australia Limited [2014] VSC 538, it is more important than ever
that officers are aware of their rights and obligations if a claim
is made against them. It is vital that officers maximise the
protection afforded to them by a company deed of indemnity and have
an understanding of the cover provided to them
