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A corporation can also purchase and maintain directors' and officers' insurance to protect its directors and officers against any liability except where the liability relates to his failure to act honestly and in good faith with a view to the best interests of the corporation.,,33 it is worth noting that it is difficult to obtain coverage for. 46 (1) a corporation may indemnify a director or officer of the corporation, a former director or officer of the corporation or an individual who acts or acted at the corporation’s request as a director or officer, or in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an. (2) an executor, trustee, director or officer cannot be indemnified for liability that relates to their failure to act honestly and in good faith in performing their duties
(3) in the circumstances and subject to the restrictions set out in this section, insurance may be purchased to indemnify the executor, trustee, director or officer for the personal liability. 64 a beneficiary may enforce in the beneficiary's own name and for the beneficiary's own benefit, and a trustee appointed under section 62 may enforce as trustee, the payment of insurance money made payable to the beneficiary or trustee in the contract or by a declaration and in accordance with the provisions of it, but the insurer may set up. Section 136 (1) and the corporation's by‑law which closely resembles it specify three conditions that the director or officer must fulfil in order to receive indemnification for the costs of defending litigation
(1) the person must have been made a party to the litigation by reason of being a director or an officer of the corporation
The miscellaneous statutes (directors' and officers' indemnification and insurance) amendment act, 2006, ss 2006, c 26 A relatively new concept in corporate affairs, that of liability insurance for directors and officers of companies, is examined in its canadian and parti cularly in its albertan context This examination is conducted against the background of possible liabilities of directors at common law and under sta tute, and the ability of companies to indemnify their directors for such lia bilities Be available to meet some of the claims against directors
Once the company has commenced proceedings under the ccaa, a debtor company may make application for an order that all or part of the company's property is subject to a charge in favour of any director or officer to indemnify the director or officer against obligations and liabilities. (4) where a school board or a school board official has insurance coverage that would cover the same or substantially the same legal expenses as those for which an indemnity is given under this section, the president of treasury board and minister of finance, if the minister considers it appropriate in the circumstances, may require that the.
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