Ensuring Corporate Misconduct: How Liability Insurance Undermines Shareholder Litigation

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Description

Shareholder litigation and class action suits play a key role in protecting investors and regulating big businesses. But Directors and Officers liability insurance shields corporations and their managers from the financial consequences of many illegal acts, as evidenced by the up to date Enron scandal and plenty of of last year’s corporate financial meltdowns. Ensuring Corporate Misconduct demonstrates for the primary time how corporations use insurance to steer clear of responsibility for corporate misconduct, dangerously undermining the affect of securities laws.

As Tom Baker and Sean J. Griffith demonstrate, this don’t need to be the case. Opening up the formerly closed world of corporate insurance, the authors interviewed people from each and every a part of the industry with a purpose to show the different instances where insurance companies could step in and play a constructive role in strengthening corporate governance—yet currently don’t. Ensuring Corporate Misconduct concludes with a set of readily implementable reforms that could significantly rehabilitate the system.


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