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Another is the soaring cost of directors' liability insurance (see article).
The usual outcome of those that succeed is for directors' legal costs and damages to be paid by directors' liability insurance (see article).
"The committee noted with interest Ms Denham's views on a range of topics, including the possible retention of emails as official records, the extension of FoI and directors' liability for data breaches, in particular," said Jesse Norman, chair of the committee.
The current U.S. laws on directors' liability and disclosure are "good enough" and don't need to be changed, Sonsini added.
An Added Expense: Directors' Liability 02.26.02 With shareholders' lawsuits becoming more frequent, premiums to cover John Q. Boardmember are getting expensive.
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The issue of executive and director liability is likely to be closely watched.
He makes directors' flesh creep by saying to them, "If you can't get $100m of non-rescindable independent-director liability coverage, you shouldn't be on the board".
Returns are also higher where overall levels of bribery are held down by greater disclosure and director liability, perhaps because such scrutiny deters entry into the bribe-paying market by other firms.
While director liability is uncommon, it is increasing.
And the board could face one heck of a director-liability headache.
· Restrictions on directors' civil liability for the content of their reports in annual statements.
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