Corporations are facing legal prosecution!

As of January 1, 2006 a new legislation comes into force. With the new Corporate Criminal Law, for the first time not only individuals/personnel of a company can be sued for illegal acts, but also the company itself.

Up till now, only managers (CEOs, CFOs, including the Members of the Board) as individuals could be sued for liability damages on the basis of an alleged, but not necessarily evidenced negligence of their controlling duty.

Now, as of January 1, 2006 share holding companies, companies with limited responsibility and other legal bodies as well as partnerships can be taken to court  and fined for illegal actions or restraints of their personnel.

Evidence and proof are not necessary, just the suspicion of it can lead to legal action.  The defence of such a prosecution is in most cases expensive because of the cost for attorneys and experts.

With the right Company Legal Protection Insurance as well as D & O Insurance this risk can be suitably covered.

If you are interested in such an insurance and you would like to receive a quotation from us, please,