D&O insurances and their implications for Danish company law

Nordic & European Company Law Working Paper No. 21-10

Forthcoming in Festschrift in honour of Rolf Skog, Norstedts Juridik, 2021

17 Pages Posted: 16 Nov 2021

See all articles by Karsten Engsig Sørensen

Karsten Engsig Sørensen

Aarhus University – Aarhus BSS, Department of Law

Hanne S. Birkmose

University of Southern Denmark

Date Written: November 16, 2021

Abstract

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

Sørensen, Karsten Engsig and Birkmose, Hanne Søndergaard, D&O insurances and their implications for Danish company law (November 16, 2021). Nordic & European Company Law Working Paper No. 21-10, Forthcoming in Festschrift in honour of Rolf Skog, Norstedts Juridik, 2021, Available at SSRN: https://ssrn.com/abstract=3964655

Karsten Engsig Sørensen (Contact Author)

Aarhus University – Aarhus BSS, Department of Law ( email )

Bartholins Allé 16, Building 1410, Room 246
DK-8000 Aarhus C
Denmark

Hanne Søndergaard Birkmose

University of Southern Denmark ( email )

Campusvej 55
Odense, 5230
Denmark
+4526901410 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
23
Abstract Views
117
PlumX Metrics