Corporate partner Doug Raymond authored an article for Directors & Boards that discusses updated options for boards of Delaware corporations seeking directors & officers (D&O) insurance.
Raymond highlights a recent amendment to the Delaware General Corporation Law (DGCL) that could provide boards of Delaware corporations with a cost-effective alternative to traditional D&O insurance and explains the risks and requirements this new legislation carries.
Raymond addresses the limitations to coverage that can be provided following the amended provision to the DGCL. He also provides a note of caution to companies filing for bankruptcy, as their ability to provide the indemnification obligations set forth in bylaws will likely be put at risk.
With the recent change in Delaware law, Raymond suggests that the boards of Delaware corporations reconsider their approach to the question of how they are best protected for directors’ service to the corporation.