This report was produced by the Corporations and Markets Advisory Committee. View further information about the Committee and it's other publications.
The Ministerial Council referred to the Advisory Committee for comment the contents of Report No 10 of the Companies and Securities Law Review Committee, (CSLRC) entitled Company Directors and Officers: Indemnification, Relief and Insurance (1990).
The Advisory Committee referred this Report to its Legal Sub-Committee (the Legal Committee) for advice. This Report represents the views of the Legal Committee on this matter. The Advisory Committee, at its meeting of 17 February 1992, considered these views and supported them in full.
The Legal Committee was concerned primarily with the CSLRC recommendations on s 241 of the Corporations Law (previously s 237 of the Companies Code). In essence, this provision prohibits companies from indemnifying, insuring or limiting the liability of their directors or officers.