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A quarter of directors lack D&O insurance: Report


A report by the Institute of Directors in New Zealand found that nearly 25% of local executive and non-executive directors do not have directors' and officers' liability insurance, Asia Insurance Review reported. Tim Grafton, chief executive of the Insurance Council of New Zealand, said that the directors may have to pay for legal costs, damages and fines from their own pocket if sued individually. Mr. Grafton said that directors could be held accountable under laws such as the Companies Act, the Fair Trading Act and the Health and Safety at Work Act among others.

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