{"id":15404,"date":"2016-10-28T13:00:45","date_gmt":"2016-10-28T11:00:45","guid":{"rendered":"https:\/\/pibgroupiberia.com\/?p=3231"},"modified":"2025-05-23T11:27:23","modified_gmt":"2025-05-23T09:27:23","slug":"the-importance-of-executive-insurance-in-the-21st-century","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/blog\/la-importancia-del-seguros-de-directivos-en-el-siglo-xxi\/","title":{"rendered":"The importance of Directors' Insurance in the 21st century"},"content":{"rendered":"

I'm sure we've all heard of the directors and officers policy or insurance<\/strong> (in our sector, we call it D&O<\/strong>). Today we will explain why you subscribe and how we can prevent complaints.<\/p>\n

Managerial liability under current legislation<\/h2>\n

In Spain, it is marketed because of the Article 236 of the Capital Companies Act<\/strong>, The new law, which we will analyse later, essentially exposes those in positions of responsibility in companies to indemnities that would be paid out of their own money, not that of the company. We can see that.<\/p>\n

As noted, Art. 236 reads, verbatim:<\/p>\n

The directors shall be liable to the company, to the shareholders and to the company's creditors for any damage caused by acts or omissions contrary to the law or to the articles of association or for those carried out in breach of the duties inherent in the performance of the office....<\/p><\/blockquote>\n

This article has a will to compensate<\/strong>. It seeks compensation to the company for the loss or damage caused by a director who has taken a negligent decision.<\/p>\n

\"Directors'<\/h2>\n

What decisions expose managers to these claims?<\/h2>\n