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Directors and Executives Sleep Easy With D&O Ruling.

By Holger Schnabel on

In a unanimous decision, the NSW Court of Appeal has handed down Australia’s first major decision on access to directors and officers

It was ruled that insurers can pay defence costs under D&O policies before any third-party claim on the insurance policy proceeds.

The decision, relating to the collapse of plantation company Great Southern, is a victory for insurers who sought the right to pay legal costs before damages or compensation that could become payable under shareholder class actions.

The Court’s decision provides greater certainty to directors that D&O and Management Liability insurers can advance legal defence costs before a judgement or settlement.


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