Directors' liabilities

Directors' liabilities - 5 January 2009

Companies Act provisions protecting directors from liability

The Companies Act prescribes that any arrangement that purports to exempt a director of a company (to any extent) from any liability that would otherwise attach to him in connection with any negligence, default, breach of duty or breach of trust to the company is void.

Any arrangement by which a company provides an indemnity for a director against any liability attaching to him in connection with any negligence, default or breach of trust in relation to the company of which he is a director is void, other than in certain situations with regard to the provision of insurance, third party indemnity provision or qualifying pension scheme indemnity provisions.

Directors' liabilities

Companies Act provisions protecting directors from liability

Introduction

Historical timetable

The Act in depth

General

Directors

Accounts & auditors

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Our Services Business News Business Forum Personal Advisor Tax Centre IR35 Centre Online Services	Home > > Limited companies > Companies Act 2006 > Directors' liabilities - 5 January 2009 Directors' liabilities Directors' liabilities - 5 January 2009 Directors' liabilities Directors' liabilities - 5 January 2009 Companies Act provisions protecting directors from liability The Companies Act prescribes that any arrangement that purports to exempt a director of a company (to any extent) from any liability that would otherwise attach to him in connection with any negligence, default, breach of duty or breach of trust to the company is void. Any arrangement by which a company provides an indemnity for a director against any liability attaching to him in connection with any negligence, default or breach of trust in relation to the company of which he is a director is void, other than in certain situations with regard to the provision of insurance, third party indemnity provision or qualifying pension scheme indemnity provisions. Introduction Companies Act 2006 Summary of sections of the Act Historical timetable Provisions commenced in January 2007 Provisions commenced in April 2007 Provisions commenced from 1 October 2007 Provisions commenced from 6 April 2008 Provisions commenced from 1 October 2008 Provisions commenced from 1 October 2009 The Act in depth General Forming a company Choosing a name for your company Changing the company name Registered office A company's members Shares and share capital Directors Appointment of directors General duties of directors Directors transactions requiring members approval Loans to directors Related director agreements Directors' service contracts Directors' liabilities Records of directors meetings Company secretary Accounts & auditors Accounting records Financial year Group accounts Directors' report Signing of accounts: directors and auditors Appointment of auditors Auditor's rights to information