HL Deb 20 May 1992 vol 537 c38WA
Lord Kennet

asked Her Majesty's Government:

Whether it is lawful for a firm to insure its directors and officers against legal claims for negligence, default, breach of duty or breach of trust, as the Halifax Building Society is reportedly proposing to do.

Baroness Denton of Wakefield

Yes. Section 310 of the Companies Act 1985 permits companies to insure its officers, including directors, against liability to the company for negligence, default, breach of duty or breach of trust. Similar provision is made for building societies in Section 110 of the Building Societies Act 1986.