Infosys, Tata boardroom battles make directors run for insurance cover

Companies reach out to insurers to provide individual cover to directors

The boardroom tussles at the Tata group and Infosys have raised a new fear in the minds of both executive and independent directors and key management professionals: What if they fall out of the board’s favour, and if there are legal liabilities on them individually? 

This apprehension has led to companies reaching out to insurance companies for individual cover for these professionals, so that they could be retained. 

Corporate directors have already been on guard since the new Companies Act assumed directors and the key management personnel to be the sentinels of governance. The attribution of criminality to the “officer