CORPORATE MANAGEMENT AND DIRECTOR AND BOARD MEMBERS LIABILITY INSURANCE

Abstract

Contracts by which the directors and members of the management of companies are insured against liability for causing damage
with the management of companies, they record a multi-decade development. From the point of view of insurance companies, it is another segment within the business offer, i.e. a new source of financing. From the point of view of the corporate governance system, it is one of the instruments of corporate governance, which had different roles in different stages of development. The author deals with the impact of these contracts on the corporate governance system, analyzing some of the positive effects, but primarily analyzing the negative effects of insurance in the context of creating obstacles for achieving corporate governance goals.