Deed of Indemnity for Directors
A Deed of Indemnity for Directors is a legal agreement between a company and a company director or company officer.
Last updated February 24, 2025
Suitable for Australia
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What is a deed of indemnity for directors?
What is a deed of indemnity for directors?
A deed of indemnity for directors is a legal agreement in which a company promises to cover certain liabilities and legal costs a director or officer incurs while performing their role.
It is a private contract between the company and the director, signed as a deed, and it is optional rather than required by law.
When should a company use a deed of indemnity for directors?
When should a company use a deed of indemnity for directors?
Use one when a director or officer wants clear protection for legal costs or claims arising from their role, such as when a new director joins or someone accepts a resident, nominee or non-executive role. Those directors often ask for one first.
A Director Agreement and Consent to Act as Director usually sit alongside it.
What should be in a deed of indemnity for directors?
What should be in a deed of indemnity for directors?
It should include the indemnity clause, details of the liabilities and costs covered, any amounts owing to the director, insurance provisions, and the director's rights, powers and remedies.
It should also say it applies only to the extent the law allows, so prohibited liabilities are carved out rather than left in as unenforceable promises.
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Frequently asked questions
What key protections does a deed of indemnity for directors offer?
keyboard_arrow_upCan a deed of indemnity for directors cover all types of liabilities?
keyboard_arrow_upCan a deed of indemnity for directors pay legal costs before a case ends?
keyboard_arrow_upDoes a deed of indemnity for directors protect former directors, and how is it different from the constitution?
keyboard_arrow_upHow does a deed of indemnity for directors interact with director's insurance?
keyboard_arrow_upDo shareholders need to approve a deed of indemnity for directors?
keyboard_arrow_upWhat are the financial risks for the company under a deed of indemnity for directors?
keyboard_arrow_upWho needs to sign a deed of indemnity for directors, and why must it be a deed?
keyboard_arrow_upWhat steps should be taken after signing a deed of indemnity for directors?
keyboard_arrow_upHow much does a deed of indemnity for directors cost, template versus a lawyer?
keyboard_arrow_upView Sample Deed of Indemnity for Directors
The Legal Risk Score of a Deed of Indemnity for Directors Template is Medium
Our legal team have marked this document as medium risk considering:
- The document places significant financial obligations on the Company, including covering various liabilities, costs, and expenses which could impact the Company's financial stability if claims are substantial.
- The document must be signed as a deed in order to be effective.
Users familiar with such documents should carefully consider the potential financial and operational impacts on the Company before proceeding, ensuring it aligns with their risk management strategies and corporate governance standards.
Meet Our Users
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