Yes. The D&O policy is still necessary. There are several problems with assuming that the company will come to the director’s rescue:
- The company might not be in a financial position to do so
- The errant director may no longer be in a position to influence the company’s decisions
- In many cases it is illegal for the company to assist in paying the director’s liabilities (s 78 Companies Act, 71 of 2008).
Directors and Officers Liability