BACKGROUND
In a fast-moving competitive environment, the Directors and
Officers of an organization are required to take bold and crucial
business decisions from time to time. Any wrong decisions can
possibly trigger legal actions (both civil and criminal in nature)
against them. As a consequence of such actions, there is a
potential exposure of loss of reputation and financial liabilities
for them.
A few instances of liabilities against Directors and Officers
are a breach of duties, shareholder and stakeholder claims, sexual
harassment allegations, violations of corporate governance regimes,
enquires and investigations initiated by the governmental
authorities, money laundering offenses, tax liability (in
certain instances where the company has defaulted but a director is
held personally liable) and liabilities under various
statues.
