More or less protection for directors?

The Companies (Audit, Investigations and Community Enterprise) Act 2004 comes into force on 6 April 2005. This is an act designed to prevent an ‘ Enron-over-here’ with a few more corporate governance hurdles for directors, as described in this CBI article.

An amendment at committee stage however now allows directors the previously prohibited luxury of being able to obtain an indemnity from the company for liabilties for actions against him or her. It may also provide funds for defending legal proceedings. This applies even for criminal or regulatory actions, including ones in the company’s name, such as by a liquidator.

See full Article.