Costs covered by articles

[lentement]

There is a clause in our Articles which says that directors can claim back their fees and expenses. Could such a clause be used to cover the cost of directors liability insurance?

[lentement]

I found something in the articles which states that the directors are covered out of the assets of the company. If the company is non profit making, how does that work?

[atticus]

Profits and assets are different things.

[atticus]

S233 Companies Act 2006 permits a company to pay for directors liability insurance. I would suggest, if there is no provision in the Articles expressly permitting this, that the authority of the shareholders is sought in a general meeting.