D&O: do you need it?
Article Abstract:
Purchasing of directors' and officers' (D&O) liability cover for financial directors has considerably increased when six chartered accountants incurred legal costs amounting to 1 million pounds sterling each in 1992 during the Blue Arrow case. The public's increased awareness of its rights and, thus, its litigiousness have apparently also worked to make D&O increasingly attractive for financial directors and their employers. An estimate by D&O insurer Chubb shows that the percentage of FT500 corporations that have D&O cover has increased from 35% in 1990 to 85% in 1993 while the other 15% are considering to have one. Furthermore, the D&O market experienced a tenfold growth to 50 million pounds since 1983. Directors with D&O covers must beware of the tax consequences of such insurance policies as they could find themselves assessed for a significant amount of 'benefits in kind' tax liability.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1993
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Need R&D mean risk and doubt?
Article Abstract:
R&D is inevitably risky, but the example of R&D-intensive industries illustrate effective ways to minimize risk. The development process should be phased in, with the high-risk and low-cost phases implemented first. In addition, several phases should be run in parallel. The relevance of each phase must be considered in relation to the manufacture of a product in the future. There should be defined breakpoints where the R&D team is required to produce something. The R&D team must be made fully aware of what the project is for and be focused on producing a commercial product within a deadline. The project's time scale can be reduced either by means of a joint venture or by licensing technology or a product.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
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