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Directors and Officers Liability Insurance

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Claim Examples

  1. Claims for Unfair Prejudice pursuant to s994 of the Companies Act (allegations that company affairs are being, or have been, conducted in an unfair manner, and which is prejudicial to the residents' interests, i.e. attempted exclusion from management and/or abuse of power / breach of Articles of Association):
    • A claim for unfair prejudice relating to a former director's exclusion from management, contrary to the Articles of Association, resulting in his resignation. Defence costs were in excess of £5,000.
  2. Defamation in respect of statements made by the directors:
    • A claim by a member/resident alleging that the directors had defamed his character at a meeting of shareholders. Damages for injury to feelings and defence costs amounted to over £15,000.
  3. Breach of lease provisions (by landlord or residents/tenants):
    • A claim for breach of lease provisions relating to the alleged failure to maintain the property, and in respect of steps taken which had a detrimental effect on value.
  4. A claim alleging the over-charging of service charge. Reimbursement was sought. Breach of Companies Act 2006:
    • A claim for disregarding the Companies Act 2006, in that the directors' allegedly passed resolutions (removing the Claimant as a director) at an EGM contrary to the provisions of the Act and the company's Articles. Damages in the sum of £25,000 were claimed.
  5. A claim alleging the over-charging of service charge. Reimbursement was sought. Breach of Companies Act 2006:
    • A claim for disregarding the Companies Act 2006, in that the directors' allegedly passed resolutions (removing the Claimant as a director) at an EGM contrary to the provisions of the Act and the company's Articles. Damages in the sum of £25,000 were claimed.
  6. A claim for the unlawful amendment of a company's Articles, such that the directors contravened the Companies Act 2006. It was alleged that there had been a failure to pass a special resolution with the requisite number of votes. Failure to protect the interests of members:
    • Following damage caused to a residential block of flats, it was discovered that the insurance purchased by the directors was inadequate to cover the loss. The shareholders of the property (the residents) brought a claim for losses they incurred as a result.