Deed of indemnity

Wednesday, 01 January 2020

A deed of indemnity is a contractual agreement between a company and a company director. A deed of indemnity can help to indemnify a director against liabilities or legal costs incurred in his or her professional capacity as a director of the company. It also commonly deals with matters such as access to documents and insurance.

A company director is subject to many legal duties. A breach of those duties for any reason, intentional or otherwise, may result in the director incurring either a liability – for example, a damages judgment – or legal costs to defend a claim. The director may also become involved in a regulatory investigation by bodies such as the Australian Securities and Investments Commission (ASIC).

In some circumstances the company’s constitution may provide an indemnity to a director. However, as the constitution can be amended without the director’s specific consent, it is preferable for a director to enter into a separate deed with the company to provide protection for a director, particularly for that period of time after they cease serving as a director of the company.

Downlaod the tool to read more.

This is of of your complimentary pieces of content

This is exclusive content.

You have reached your limit for guest contents. The content you are trying to access is exclusive for AICD members. Please become a member for unlimited access.