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Sarbanes-Oxley News & Developments
D&O Insurance Courts and companies may look more closely at whether directors acted in good faith.
> > Increased focus on D&O Insurance brought about by the Sarbanes-Oxley Law of 2002 (SOX) and recent business scandals raise questions about coverage for outside directors. Courts and companies may look more closely at whether directors acted in good faith. Additionally, the scope of the examination of questioned actions may extend beyond intention and into the rationality of the process used in making the decision. As a result, corporations may be less inclined to indemnify executives and audit committee members accused of violating SOX.
And what about attorney fees? A member of
Source: International Risk Management Institute
Published:2003-02-28
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