Localization Construction of Directors'Liability Insurance System

Abstract

As an insurance to reduce the company's business risks caused by directors' misconduct, the directors' liability insurance system has not fully demonstrated its function and shows signs of acclimatization. From the perspective of comparative law, the author examines the institutional background and functional evolution of directors' liability insurance in the United States, the former doubts and adaptations in the British law, and the continuation and evolution in the German law, which provides enlightenment for exploring the dilemma of directors' liability insurance system in China and the way to improve it. Directors' liability insurance is not an isolated insurance law adjustment content, and China lacks systematic substantive rules and procedural implementation mechanisms for directors' obligations. The Company law has laid a legal foundation for directors' liability insurance to play its function, supplemented by lower level norms such as regulations at the regulatory level, and gradually expanded the scope of applicable subjects of directors' liability insurance to all types of company directors and executives. Then from the level of insurance law system, the localization of directors' liability insurance clauses is realized, and the unification of the main clauses of the contracts of various insurance companies is promoted, which provides a feasible way to perfect the directors' liability insurance system in our country.