What are the top three things to consider in Italy with regard to director liabilities / reporting to the board?

01. Directors can be made liable if there is a breach of their duties or obligations, an occurrence of damages following the breach and a direct connection between the director’s breach and the occurrence of subsequent damages.

02. The liability of the directors can further be triggered if directors delay or postpone reporting their company as insolvent to the competent bankruptcy courts. In this regard, new Italian rules pertaining to bankruptcy and insolvency have recently been approved.

03. The liability of the directors may be prevented or limited if the company implements a structured Corporate Governance system in accordance with the provision of the Italian Legislative Decree n. 231/2001.

“Minimising Corporate Liability: Advice from Outside Counsel” is an IR Global report including contributions from 23 outside counsel across multiple jurisdictions. It touches on the key areas of director liability and governance mechanisms between board and c-suite executives; as well as current trends within regulatory agencies and courts of which in-house counsel should be aware. Download the full publication here.