D&O and Foreign Subsidiaries

Given the increasingly global nature of business, many US public and private companies find it advantageous to incorporate subsidiaries in jurisdictions outside of the United States. It has long been accepted as conventional wisdom that the officers and directors of these foreign subsidiaries face little risk of personal liability and that, if a problem were to arise, the parent company's director and officer liability insurance policy would respond. Conventional wisdom is, in this case, unreliable.

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