In a recent spate of litigation, a number of adverse court verdicts regarding the liability of directors and officers of companies to a third party were passed where the directors and officers were held personally liable for payment of compensation to the third party. Ordinarily, the directors and officers are bound by duty towards the company itself, shareholders, employees, creditors, customers, competitors, members of the public, government and other regulatory bodies. Any breach or non-performance in the duties can result in claims against the companies and/or its directors of the company by reason of any wrongful act in their respective capacity. The Directors\' and Officers\' Liability Insurance policy has been designed specifically to meet any financial liabilities imposed upon them.

This policy is necessary for directors and officers of every company if they wish to avoid potential litigation owing to:

  • Failure of supervision.
  • Inaccuracy in statements of financial accounts.
  • Lack of judgement and good faith.
  • Mismanagement of funds.
  • Mis-statements in prospectuses.
  • Allotment of shares.
  • Unauthorized loans or investments.
  • Failure to obtain competitive bids.
  • Imprudent expansion resulting in a loss.
  • Using inside information.
  • Unwarranted dividend payment, salaries or compensation.
  • Misleading statements filed with the stock exchange.
  • Misrepresentation in acquisition agreement for the purchase of another company.
  • Wrongful dismissal of an employee.

Head Office - Nairobi

Crawford Business Park,
2ndFloor State House Road
Tel: +254 (02)2721555 (pilot line) 
Mobile: +254 722 209 547 / 0736 381 707
24 hour Line - +254 728 760 061, +254 738 188 449
SMS: 20599

Branches

Mombasa

Mombasa Trade centre, 1st Floor
Nkurumah Road
Tel: +254 (041)2312497/2223410

Industrial Area

Vinodeep Towers, 2nd Floor
Baricho Road
Tel: +254 020 557981 / +254 020 8045186

Connect with us

joomla social media module

Membership

aib.png