Statutory Responses to Boardroom Fears

Thursday, January 1st, 1987 at 12:00 am by Karen Leigh Chapman
Karen Leigh Chapman, Statutory Responses to Boardroom Fears, 1987 Colum. Bus. L. Rev. 749

As a result of the reduced availability of insurance, coupled with the increasingly high standards of care and loyalty imposed upon officers and directors by the courts, many qualified persons may be unwilling to sit on corporate boards. The compensation for such positions is generally not proportional to the potential liability, and the prospect of greater liability can only result in ineffective directors. In efforts to attract new corporate entities and to protect the boards of those already incorporated in the state, state legislatures are passing measures designed to deal with the crisis in the D&O liability insurance industry. This Note focuses on the range of statutory measures enacted in response to these problems.

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