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Insurance is one way to limit exposure to risk, albeit on the back end and in the form of financial indemnification rather than reputation control.
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In the wake of the financial crisis, limited partners are acting to ensure that indemnification provisions do not become overbroad so that executives cannot be easily absolved of their sins.
"Many private equity general and limited partners are closely re-examining indemnification and other corporate governance provisions in light of the financial crisis," according to James Silk, a partner specializing in fund formation at the law firm Willkie Farr & Gallagher.
But indemnification rights are not unlimited.
"Mutual indemnification always is, " he replies.
But indemnification does not apply across the board.
Menem then passed, by Presidential decree, the "law of indemnification".
The provision in the one-year contract involves indemnification.
Demands for indemnification don't just come from businesses.
Each board member, by name, should also receive written indemnification.
Finally, it wanted to move within the region without paying the Knicks an indemnification fee.
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