D&O insurances and their implications for Danish company law
Forthcoming in Festschrift in honour of Rolf Skog, Norstedts Juridik, 2021
17 Pages Posted: 16 Nov 2021
Date Written: November 16, 2021
In Denmark the number of Directors and Officers insurances is increasing and the article analyses some of the implications this may have for Danish company law and, in particular, the possible implications for corporate governance. First, we discuss the possible implication of the fact that most insurances cover both the board and the managing directors. Next, we discuss who should make the decision to take out an insurance and we argue that the general meeting of shareholders should be involved in this decision. Finally, we discuss the possible negative effects of having such insurances, followed by a discussion of how the insurance companies in Denmark take action to mitigate these negative effects.
Keywords: D&O insurances, company law implications
JEL Classification: K22
Suggested Citation: Suggested Citation