It has long been recognized that directors
and officers are the people who can make or break a company.
However, after the collapse of companies such as Enron, Global
Crossing and K-Mart, D&O underwriters are taking a closer
look at board members. As a result, corporations should be
prepared to provide additional information about their company
The company’s charter and the workings of the audit
committee also will be scrutinized, as will its insider trading
policies. Underwriters are attempting to determine the independence
of the audit committee, as well as possible conflicts of interest
with board members. Underwriters probably will request documentation
on these company policies.
Companies also should be prepared to begin their renewal
process far earlier than in past years. What might have taken
30 days to complete in prior years could take 90 to 120 days
now because of lengthy information requests. Plan for a time-consuming
renewal process and let us assist you in this effort.