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Costs covered by articles

Costs covered by articles

Postby lentement » Wed Dec 14, 2016 8:54 pm

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?
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Re: Costs covered by articles

Postby lentement » Thu Dec 15, 2016 1:49 pm

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?
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Re: Costs covered by articles

Postby atticus » Thu Dec 15, 2016 2:12 pm

Profits and assets are different things.
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Re: Costs covered by articles

Postby atticus » Thu Dec 15, 2016 2:29 pm

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.
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