Under deeds of access, insurance and indemnity, the company usually agrees to:
1. indemnify
the director to the extent permitted by law;
2. maintain,
and pay the premium on a D&O policy covering the director;
3. maintain
a copy of all board papers; and
4. give
the director access to the board papers and other documents of the company.
Access to board papers and company documents is essential for a director to discharge their obligations.
Most companies and directors put in place such agreements on a uniform basis for each director.
Where deeds are required for other executives (non directors) they may require some modification. For example, these officers will typically not be entitled to access the board papers.
You might also be interested in The Chairman’s Red Blog, which is a supporting resource for the book.
Until next week.