A. Yes, The price of the chair has changed because the expectations from directors and senior leaders have expanded considerably. Boards continue to be responsible for strategy, growth and financial performance, but they are now operating in an environment of greater regulatory, shareholder and public scrutiny. The Companies Act, 2013, stronger regulatory enforcement and evolving stakeholder expectations have also made the responsibilities of directors much more clearly defined. The important change is that accountability today is not limited to the outcome of a decision. There is increasing focus on the process behind it, what information was available, whether adequate questions were asked, whether risks were considered and whether appropriate oversight was exercised. This also means that individual directors and officers can face regulatory investigations, shareholder actions or legal proceedings even where there is no allegation of deliberate wrongdoing. That is the context in which D&O insurance has become an important part of corporate governance. It does not remove a director’s responsibility or accountability. It provides financial protection when directors and officers have to defend actions and decisions taken in their professional capacity.
