2.7.10 Summary:• rare cases

Protecting directors in the UK from liability has not been a priority because the chances of a lawsuit have been so small. However, there has been growing concern in recent years about directors' liability, due in large part to the Equitable Life litigation and, in line with similar concerns in the US, attempts to protect directors have increased. The 2006 amendments to the UK Companies Act allow a company to advance the legai expenses to a director, who is being sued, to indemnify directors in third party suits and provide their directors with better D&O protection. Thus far the risk of out-of-pocket payments by outside directors is minimal. The main concerns are naming and shaming, disqualification and regulatory fines.