ACC 312 Study Guide - Midterm Guide: Professional Liability Insurance
Document Summary
Directors of limited companies, in addition to taking out individual professional liability insurance, must ensure that they clearly understand their obligations and responsibilities. Directors of companies need to be aware of the dividing line between the commission of a criminal offence and the commission of technical offences of the companies act. Directors should take the necessary actions to ensure compliance with their obligations and responsibilities, and to protect themselves against possible non-compliance: Directors may delegate their responsibilities within or outside the company and in such circumstances they must ensure that the work is being done by competent, able and honest people. Directors of small companies in particular should get professional help to ensure compliance with statutory responsibilities. Directors must ensure that they are kept fully informed about the affairs of the company by having regular meetings and recording minutes and material decisions. Directors should ensure they have service contracts that cover the (cid:272)o(cid:373)pa(cid:374)y"s duties, rights, o(cid:271)ligatio(cid:374)s, a(cid:374)d dire(cid:272)tors" (cid:271)e(cid:374)efits.
