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Directors' liabilities

Companies Act provisions protecting directors from liability

The Companies Act prescribes that any arrangement that purports to exempt a director of a company (to any extent) from any liability that would otherwise attach to him in connection with any negligence, default, breach of duty or breach of trust to the company is void.

Any arrangement by which a company provides an indemnity for a director against any liability attaching to him in connection with any negligence, default or breach of trust in relation to the company of which he is a director is void, other than in certain situations with regard to the provision of insurance, third party indemnity provision or qualifying pension scheme indemnity provisions.