Author(s): Irina Costescu, Lavinia Olivia Iancu
Subject(s): Economy
Published by: Editura Eurostampa
Keywords: French Law; civil liability; management members; insurance; limitation

Summary/Abstract: In French Law the management members of the companies can limit the civil liability if they cause damage to the company or third party. In most cases the volume of the damage caused to the company or third party far exceeds the volume of their private property. We appreciate that the financial ruin of the governing bodies can not be the appropriate sanction because it may lead to indifference on their part, knowing from the beginning that will not cover damage. A limitation of civil liability in this context clearly corresponds to a modern law. "D&O"(Directors and Officers Liability Insurance) is a liability insurance that protects the personal assets of the management members of the company. Its object is to cover the damage that members of governing bodies, would cause to the company or third parties, who knowingly breach of their obligations. Although all parties have interests in concluding the insurance there is no legal obligation in this sense.

  • Issue Year: XVII/2011
  • Issue No: 17
  • Page Range: 1090-1098
  • Page Count: 9
  • Language: English