We use cookies to improve this site and enable full functionality. You can change your cookie settings at any time using your browser. Our cookie policy.

Top five risks facing directors and officers

Top five risks facing directors and officers

Top five risks facing directors and officers Directors and Officers coverage has taken on a new priority, with high-ranking officers in public and privately-held corporations working under an unprecedented level of scrutiny.

A survey conducted by Allen & Overy and Willis in September 2014, titled ‘Directors’ liability – D&O: Blurring the lines,’ explored shareholder pressure, perceptions of public interest, heightened regulatory vigilance and a hostile enforcement and litigation environment: some of the forces that corporate leaders have to manage on a daily basis.

Francis Kean, executive director in Willis’ Financial and Executive Risks Practice (FINEX), shares his findings from the survey:

Directors can now be held personally liable in the U.K. for offences that include bribery, corruption and fraud; competition and antitrust matters; environmental law; health and safety; tax; international sanctions; money laundering; financial reporting requirements; the Dodd–Frank Act and other long-arm U.S. legislation.

Yet, there is still a lack of awareness of this among many directors and other senior officers.

Sixty-three per cent of them are unaware of the proposed expansion of the directors’ disqualification regime. The proposals, set out in a paper published by the U.K. Department for Business, Innovation and Skills titled Transparency & Trust: Enhancing the Transparency of U.K. Company Ownership and Increasing Trust in U.K. Business, will introduce ‘broader and more generic’ provisions in relation to the matters determining the unfitness of a director. The proposals will outline several factors that could be used to justify disqualification, covering misfeasance, breaches of duty, legislation and sector regulations. (continued.)

read more > 1 2 3 4 5