Insurance for bad management - Articole Transport-Business.ro

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Romania is the first and only EU member state to enforce a directors and officers insurance (D&o). A law passed last year requires joint stock companies to buy insurance policies for CEos’ and administrators’ liability. This type of insurance is meant to protect shareholders and even employees from bad management effects. It is an expensive policy, the costs being in the range of 1,000 to 5,000 Euros. Because of the steep price, EU authorities don’t even think about enforcing an insurance of this kind. Still, Romanian companies may also skip this insurance, since the law says it is mandatory, but doesn’t specify any penalty for those who don’t contract a policy of this kind.