HL Deb 09 November 1989 vol 512 cc1007-8

166 After Clause 108, insert the following new clause —

'Effecting of insurance for officers and auditors of company

.—(l) In section 310 of the Companies Act 1985 (provisions exempting officers and auditors from liability), for subsection (3) (permitted provisions) substitute — (3) This section does not prevent a company —

  1. (a) from purchasing and maintaining for any such 1008 officer or auditor insurance against any such liability, or
  2. (b) from indemnifying any such officer or auditor against any liability incurred by him —
    1. (i) in defending any proceedings (whether civil or criminal) in which judgment is given in his favour or he is aquitted, or
    2. (ii) in connection with any application under section 144(3) or (4) (acquisition of shares by innocent nominee) or section 727 (general power to grant relief in case of honest and reasonble conduct) in which relief is granted to him by the court".

(2) In Part I of Schedule 7 to the Companies Act 1985 (general matters to be dealt with in directors' report), after paragraph 5 insert—

"Insurance effected for officers or auditors

5A. Where in the financial year the company has purchased or maintained any such insurance as is mentioned in section 310(3)(a) (insurance of officers or auditors against liabilities in relation to the company), that fact shall be stated in the report.".'.