Directors at risk
28 July 2022
2 out of 3 companies in New Zealand cannot provide insurance for their directors or employees.
Startling figures from the Ministry of Business, Innovation & Employment confirm that of the 701,710 companies on the New Zealand register, 469,951 companies do not have constitutions. This exposes the directors and employees of these companies to full personal liability.
Paul Moodie and Lee Macaskill from Findex and legal expert Katrina Hulsebosch from Harris Tate discussed the practical implications of:
Why most companies in NZ cannot insure or indemnify their directors.
The risk for companies who have insurance, but are in breach of the Companies Act.
The impact of a “hard claims” market for insurance companies.
How to fix this quickly and simply.
Paul Moodie – Senior Partner, Consulting
Lee Macaskill – Adviser
General Insurance, Katrina Hulsebosch – Director, Harris Tate