Public Offering of Securities Insurance
Public Offering of Securities Insurance provides directors and officers, their company and some of the major shareholders in the company with protection against the potential exposure to claims in connection with the documentation relating to the public offering of securities.
Directors may be faced with implementing a strategy to raise additional capital, bring a new entity into the market, or restructure existing shareholdings. The management challenge, which such projects involve in today’s climate, may mean that some of the practical implications and the risks for those involved are overlooked.
The directors of a company contemplating a new issue will have to assume responsibility for the preparation of listing and supplementary listing particulars (which especially include prospectuses), and they will be liable by law for the consequences of any material omissions or mis-statements in such particulars.
Professionals who are not directors of the company can also be affected. e.g. company secretary, general counsel, underwriters. The same may apply to major shareholders of shares that are being issued for public sale, if they have roles in the issue which entail them being responsible for its documentation.
This product recognises and provides useful coverage for the risks, and in particular for the extensive costs of any involvement in litigation, or in regulatory investigations.
ACE Elite II Public Offering of Securities Insurance
Listen to the podcast by Mr Stanley Wong, Financial Lines Manager, Asia, to learn more about the product.