When a company is faced with a difficult situation – for in-
stance, due to an impending, substantial environmental or antitrust fine, a large damage claim, or negligent conduct by members of company bodies – great care and attention is needed, usually involving separate advice to the company bodies concerned.
In this respect, the independence of the advice is critical to ensure that the matter is investigated without regard to the interests involved, the legal situation is analysed and recommendations for action are given.
This enables the responsible persons to fulfil their special tasks and, at the same time, to minimise their liability risks.
Companies tend to obtain D&O (Directors and Officers) insurance coverage so as to limit risks for members of their management and supervisory boards resulting from alleged violations of their duties. It is often necessary to carefully review the underlying insurance policies and to propose amendments thereto in order to secure best protection for the management and supervisory board members covered by such insurance policies.