Director Indemnity Agreement India

Legal limitation of liability: the exemption may also be provided for in the articles of association of the company (Companies Act, 2013 – Schedule I – Table-E – Clause 91). However, compensation may be applied only if it is incurred against the liability of an officer in proceedings which have one of the following results: (a) the judgment is rendered in favour of the director; (b) the director is acquitted or dismissed; or (c) it is found that, although responsible, the Director acted honestly and reasonably and should be excused. Pursuant to the reservation in section 463(1) of the Companies Act, 2013, a chief executive officer cannot be compensated for his or her liability in civil or criminal proceedings for which he or she is found guilty. Overview: D&OL Insurance protects former, current and future directors from any claims for compensation resulting from alleged/actual illegal actions of such directors…