Improvement Of Directors Liability Insurance Legal System

With the development of market economy, there are more and more attentions paid to the protection of shareholders and stakeholders. Expanding directors'civil liabilities is becoming the trend and track of the development of corporate law. As an effective risk diversification mechanism, Directors'and Officers'Liability Insurance (D&O liability insurance) can directly protect the directors'interests and indirectly protect the interests of the company and relative parties. It can also mitigate the negative impact of the overriding concern with directors in present corporate governance. D&O liability insurance has a history of more than 70 years and it has a relatively integrated theoretical and institutional frame system come into being.While in China D&O liability insurance is just on the beginning stage and supports from concerning systems are insufficient in every aspect and many obstacles hinder the development of it. The author of this article believes that along with the development of the securities market and the increased amount of litigation brought against directors for damages, the D&O liability insurance market will get further developed and this kind of insurance will contribute to sustain the balance of the rights and liabilities of directors and help to promote the corporate governance. On the basis of current domestic situation mentioned above, the author tries to, through discussing and comparing the D&O liability insurance system of developed countries, using their experiences for reference, provide some helpful suggestions in legislature and reform which help to establish D&O liability insurance system in China.This thesis includes four parts:The first part is of summarization about D&O liability insurance. The main content of this part is to introduce the concept, the emergence and...