Liability relief

Article Abstract:

Directors are liable for the financial losses of a company despite the absence of negligence standards applicable to them. In the May 1995 case of 'Daniels v. Anderson,' the Court of Appeal of New South Wales, Australia, reversed the trial court's decision on the directors' negligence. The higher court held that directors cannot invoke ignorance of corporate matters as a defense because they are obliged to exercise care for the corporation by informing themselves, establishing checks and balances, and being familiar with the business.

Cases, Negligence, Liability (Law), Legal liability

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Double indemnity: supplemental insurance coverage could protect you against the risks of doing business in the technological world

Article Abstract:

Chartered accountants should hone their knowledge of the insurability of the risks faced by their clients in the information technology environment. Although not all risks are economically insurable, supplemental insurance coverage is available for businesses that want to protect themselves from technological risks. When looking for appropriate coverage of the risks, accountants and businesses should look into the specific clauses and endorsements related to the information technology environment.

Evaluation, Insurance, Information technology

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Avoiding liability

Article Abstract:

Professionals such as accountants may be considered more liable when they become company directors. Strategies for preventing this and avoiding liability such as the use of reporting and monitoring systems are presented.

Employer liability, Prevention, Behavior

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