Preventively you can do quite a lot to reduce the risk:

• Before taking office, make a thorough analysis of the company
• Make sure the Board of Directors is diverse in its knowledge and experience
• Work on a framework that allows for good governance
• And so on…

Legally, there are also a number of mechanisms by which you can provide additional cover. For example, you can limit your liability to the company by means of an agreement.

Removal is an ultimate means if you really see that in terms of governance things are going wrong, but is only a means for the future.

Preventively you can do quite a lot to reduce the risk:

• Before taking office, make a thorough analysis of the company
• Make sure the Board of Directors is diverse in its knowledge and experience
• Work on a framework that allows for good governance
• And so on…

Legally, there are also a number of mechanisms by which you can provide additional cover. For example, you can limit your liability to the company by means of an agreement.

Removal is an ultimate means if you really see that in terms of governance things are going wrong, but is only a means for the future.

After prevention and legal solutions, a director’s liability insurance remains appropriate to cover most of the remaining risks.