Transitions in Employment

Posts Tagged ‘breach of fiduciary duties’

It appears that the trustee in bankruptcy is considering bringing suit against former executives of failed MF Global for “breach of fiduciary duties.”  News reports indicate that there are insurance policies in place that will provide coverage for the executives for their “wrongful act” legal defense fees.  While the author is not opining on the actions of the MF Global executives, the issue illustrates the significance for C-suite executives to obtain maximum indemnification coverage, not only as provided under a company’s bylaws, but also under insurance policies of indemnification (referred to as “errors and omissions” or “directors and officers” insurance policies).  It will be interesting to see whether the causes of actions enumerated in the pleadings will be subject to the coverage in the policies or whether there will be coverage disputes ensuing.