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Directors and officers insurance
With UK and EU legislation increasingly affecting most aspects of corporate management, it is all too easy for directors, quite innocently and with no dishonest intent or criminal motive, to breach their duties - with potentially disastrous consequences for both themselves and the company. Frequently, the mistake they make will not be uncovered for some time. Then, armed with the wisdom of hindsight, a zealous shareholder, group of institutional shareholders, liquidator or other interested person may use that mistake as a hook on which to hang a legal action against the individual director or officer.
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