4. BLD D&O-MEETING · BLD Bach Langheid Dallmayr Rechtsanwälte Partnerschaftsgesellschaft mbB 4. D&O-Meeting | Köln | 03.03.2016 8 BGH, Urteil vom 08.12.2015 – II ZR 68/14 WM

BLD Bach Langheid Dallmayr Rechtsanwälte Partnerschaftsgesellschaft mbB 4. D&O-Meeting | Köln | 03.03.2016 1

Köln | 03.03.2016

4. BLD D&O-MEETING

2 BLD Bach Langheid Dallmayr Rechtsanwälte Partnerschaftsgesellschaft mbB 4. D&O-Meeting | Köln | 03.03.2016

AGENDA

RAe Björn Seitz und Bastian Finkel, BLD

□ Aktuelle Rechtsprechung zu Zahlungen nach Insolvenzreife

□ IX. Zivilsenat des BGH beschäftigt sich mit dem Claims-Made-Prinzip

Andre Alarcon, Demarest Advogados, Sao Paulo

□ Der Brasilianische D&O Markt

□ Haftungsgrundlagen

Uwe Ritzer, Süddeutsche Zeitung

Leichtes zur Begrüßung

D&O in Brasilien

Aus dem Leben eines Wirtschaftsjournalisten


AGENDA

RAe Björn Seitz und Bastian Finkel, BLD

□ Obliegenheiten der VN nach Gewährung von Abwehrdeckung

RA Michael Jakobs LL.M., BLD

□ Grundlagen M&A

□ Haftungsrisiken

Mrinal Ojah und Trinath Tadakamalla, Phoenix Legal, Neu Dehli

□ Haftungsgrundlagen

□ Schadenregulierung aus Deutschland – geht das?

Leichtes für Zwischendurch

M&A als Haftungstreiber in der D&O

D&O in Indien


Leichtes zu Begrüßung

RAe Björn Seitz & Bastian Finkel, BLD


VORAB…


HAFTUNGSTREIBER INSOLVENZ

BGH, Urteil vom 18.11.2014 – II ZR 231/13

WM 2015, 77-79

1. Die Ersatzpflicht des Organs für Zahlungen nach Insolvenzreife entfällt, soweit die durch die Zahlung verursachte Schmälerung der Masse in einem unmittelbaren Zusammenhang mit ihr ausgeglichen wird.

2. Der als Ausgleich erhaltene Gegenstand muss nicht noch bei Eröffnung des Insolvenzverfahrens vorhanden sein. Maßgeblich für die Bewertung ist der Zeitpunkt, in dem die Masseverkürzung durch einen Massezufluss ausgeglichen wird.




WM 2015, 1467 - 1471

1. Der Einzug von Forderungen, die an die Bank zur Sicherheit abgetreten waren, auf einem debitorischen Konto der GmbH und die anschließende Verrechnung mit dem Sollsaldo ist grundsätzlich keine vom GF einer GmbH veranlasste masseschmälernde Zahlung im Sinn von § 64 GmbHG, wenn vor Insolvenzreife die Sicherungsabtretung vereinbart und die Forderung der Gesellschaft entstanden und werthaltig geworden ist.

2. Eine Zahlung kann auch ausscheiden, soweit infolge der Verminderung des Debetsaldos durch die Einziehung und Verrechnung einer Forderung weitere sicherungsabgetretene Forderungen frei werden.



WM 2015, 1467 - 1471

□ Wird auf ein debitorisches Konto einer GmbH eine zur Sicherheit an die Bank abgetretene Forderung eingezogen, die erst nach Insolvenzreife entstanden oder werthaltig geworden ist, kann es an einer masseschmälernden Zahlung im Sinne von § 64 Satz 1 GmbHG gleichwohl fehlen, wenn die als Gegenleistung an den Forderungsschuldner gelieferte Ware im Sicherungseigentum der Bank stand.



UND…

OLG Hamburg, Beschluss vom 08.07.2015 – 11 U 313/13

WM 2015, 2330 - 232

1. Eine Pflichtverletzung des Insolvenzverwalters kommt in Betracht, wenn dieser unabgestimmt und ankündigungslos die für den Geschäftsführer bestehende D&O-Versicherung beendet.

2. Die mit dem sog. Claims-Made-Prinzip verbundenen Nachteile in einer D&O-Versicherung stellen eine unangemessene Benachteiligung dar, wenn die regelmäßige dreijährige Nachmeldefrist für den Fall der Insolvenzantragstellung der Gesellschaft vollständig ausgeschlossen wird.


D&O in Brasilien

Andre Alarcon, Demarest Advogados, Sao Paulo

© 2016 Demarest Advogados www.demarest.com.br All Rights Reserved

Considerations about D&O Insurance AGENDA

1. Historic Evolution - D&O in Brazil

2. Directors' and Officers' Liability under Brazilian Laws

3. Present problems:

● Questionnaire; Exclusions; Defense Costs; etc.

4. Leading case at the Court of Appeals of the State of São Paulo - TJSP

5. Future?

6. Questions / Discussions


First Issuances

Claims Judicial

Decisions

1998 ~ 2005 2005 ~ 2010 2010 ~ 2015

D&O - BACKGROUNDS


DIRECT PREMIUMS (2003-2015*)

*Data from SUSEP – January 2016


LOSS RATIO (2003-2014*)

*Data from SUSEP


INCOME/LOSS RATIO (2014)*

• Loss ratio in the period: 53%

*Data from magazine “Valor Financeiro”, May 2015


LOSS RATIO

• Peaks in 2010 and 2014 / 2015 (forecast): Losses by Aracruz and Sadia in the exchange and derivatives markets; OGX and EBX, problems in the financial market; PETROBRAS due to corruption scandals ("Car Wash" investigation).

• Recessive scenario (increased rates, coverage limitation)

• Increase of inspection by the Securities and Exchange Commission (CVM)

• Increase in administrative inspections for verification of environmental and labor liability

• Learning curve of the insurers - consolidation of the market


DIRECTORS' AND OFFICERS' LIABILITY - INTRODUCTION

• Increased exposure of D/Os as a consequence of new provisions and regulations under Brazilian law over the last years

• Complex decisions in a changing regulatory and legislative environment

• Authorities imposing tougher rules and penalties

• Increased personal exposure to litigation due to greater participation of qualified institutional investors in the management of companies

• Implementation of corporate governance rules / Clean Companies Act (2014)

• Profile of the companies' minority shareholders

= Increasing demand of D&O Insurance

D&O Insurance products more sophisticated

Tailored to meet local market


DIRECTORS' AND OFFICERS' LIABILITY - LEGAL FRAMEWORK

• General principle: no personal liability for obligations assumed on behalf of company or regular acts of management within the powers, except:

• Brazilian New Civil Code ("BCC" - Law No. 10.406/2002, art. 1016) and the Corporations Law (Law No. 6404/76, art. 158).

D / O personally responsible to the company and third parties:

acts carried out with fault, negligence or wilful misconduct

acts beyond, in breach of or in excess of powers granted in the bylaws

breach of the law

• Directors / Officers liability in other several areas:

Criminal Tax Labor Social security Environmental Bankruptcy Competition Consumer Law


STRUCTURE OF COMPANIES

The most frequently used corporate types are:

(i) Corporations (known as "Sociedade por Ações" or "S.A."

(ii) Limited liability companies (known as "Limitada" or "Ltda.")

In both types the participants have limited liability.


S.A. X LTDA. (i) S.A. (Corporations) • governed by the S.A. Law (Law No. 6404/76) • complex legal framework (shareholders' and management relations, corporate

governance structures, decision-making process, disclosure obligations, etc.) • 2 types: listed (shares are publicly traded) and closed capital • capital divided into shares • liability of shareholders is limited to the amount of subscribed shares

(ii) Limitadas (Limited liability companies ) • governed by the Civil Code (art. 1052 to 1087); supplemented by the S.A. Law • Articles of Association is the legal instrument of the company's formation and

governance • 2 types: commercial ("sociedade empresária") and non-commercial ("sociedade

simples") • capital divided into quotas • quotaholder/partners are liable in the limit of subscribed quotas, however they are

jointly liable for the payment of the entire amount of the capital


CORPORATE BODIES

(i) S.A. (Corporations)

• administered by 1 or 2 corporate bodies: the Board of Directors ("Conselho de Administração") and the Board of Officers ("Diretoria")

• Board of Directors: at least 3 members, who may be domiciled abroad

• Board of Officers: at least 2 members, who must be resident in Brazil

• 1/3 of the members of the Board of Directors may serve as members of the Board of Officers

(ii) Limitadas (Limited liability companies )

• flexible structure

• at least 1 individual in the company's management ("administrator" / "manager")


DUTIES OF THE BOARD


Main roles of the Board of Directors include:

(i) setting out the general business, administrative and financial policies;

(ii) election and dismissal of the members of the Board of Officers;

(iii) supervision of Officers;

(iv) monitoring the company's contractual relations and negotiations, among others.

The Board of Officers is responsible for:

(i) the operation of the entity on a daily basis, pursuant to the policies set out by the Board of Directors and the resolutions taken at the Shareholders' meetings;

(ii) the legal representation of the company before third parties


Roles of the Board of Directors (if elected) are set out in the Articles of Association


DUTIES OF THE BOARD - CONT.


S.A. Law establishes the standard duties expected from D/Os in Brazil:

(i) duty of care and diligence (art. 153)

(ii) duty of loyalty (art. 155)

(iii) duty to avoid conflict of interest (art. 156)

Listed companies:

(iv) duty of confidentiality and insider trading prohibition (art. 155 (1) to (4));

(v) duty of disclosure (art. 157)


BCC, in general lines = officers should exercise a duty of care and diligence that an ordinary man would employ in managing his own business.


DIRECTORS AND OFFICERS - JOINT LIABILITY

S.A. Law:

art. 158 (1) = director or officer not liable for illegal acts performed by other officers, except when by negligence or connivance, did not investigate or act to prevent the illegal acts being performed by others.

art. 158 (2) = directors and officers will be held jointly liable for damages caused by non-compliance of legal duties relating to the regular management of the corporation.


STATUTORY LIABILITY OF DIRECTORS AND OFFICERS Criminal Law = criminal liability may attach when D/Os act with wilful misconduct and their acts are

offensive to the public order (e.g.: crimes against the economy and financial system; fraud against creditors, insider trading)

Tax Law = Art. 135 of the Brazilian Tax Code, D/Os are personally liable for tax liabilities arising from acts performed in excess of authority or breach of the law or the company's bylaws.

Labor Law = D/Os not responsible for ordinary labor debits, but can be sued by employees in some cases (e.g.: unfair/illegal dismissal; unlawful discrimination)

Environmental Law =

Art. 225 (3) of the Federal Constitution, individuals and legal entities are strictly liable for act and activities that are harmful to the environment and have the obligation to repair the damage.

Law No. 9605/98 (Environmental Statute), representatives of an infringing entity who contributed to the breach of the law and did nothing to prevent it occurring can also be held liable.


STATUTORY LIABILITY OF DIRECTORS AND OFFICERS - CONT. Competition Law = D/Os are jointly liable with the company for any breach of the economic order

(art. 32 of the New Brazilian Competition Law).

Consumer Law = D/Os and shareholders can be held directly responsible whenever damages are caused by abuse of rights or power, violation of the law or company's bylaws or commitment of a wrongful act.

Bankruptcy Law = D/Os personal liability may be ascertained in the bankruptcy proceedings.

Securities and Exchange Commission = D/Os of public listed companies subject to administrative penalties for unlawful activities or actions considered illicit by the CVM and obligation to indemnify the damages caused.


LIABILITY OF DIRECTORS AND OFFICERS - DISREGARD DOCTRINE

Disregard of the Legal Entity Doctrine

Art. 50 of the BCC - civil liability of legal entities may be extended to officers and shareholders in cases of:

Abuse of the legal entity

Deviation from corporate purposes

Confusion of assets / lack of separation of assets

General Principle: separation of assets and liability

Concerns: precedents improperly applying the disregard doctrine when the legal entity does not have funds to pay the creditors; also in case of labor and tax debts.


Court of Appeals of the State of São Paulo

PRESENT PROBLEMS

• Questionnaires - D&O;

• Investigated Principal or Insured?

• Fraudulent crimes and coverage for

Defense Costs

• Policy Triggers


QUESTIONNAIRES IN PROPOSALS TO CONTRACT

• Brazilian Civil Code:

Art. 765: duty of strict good faith and truthfulness

Art. 766: loss of guarantee in case of deliberate omission

• CVM Instruction 358: disclosure of information


QUESTIONNAIRES IN PROPOSALS TO CONTRACT

• Is the Applicant aware of any fact that could lead to complaints against him in the

future?

• Is the Applicant aware of a complaint filed against him?


PROBLEMS IN QUESTIONNAIRES

• The definition of Complaint is inserted in the Policy wording.

• Does the signatory bind the other Insureds? Is he aware of all complaints?

• Difference between Principal and Insured as parties in complaints.


Criminal Investigation against Principal

Notification of Insured as Principal's

Representative

2010

2011

2012

2013

2014

Action by the Public Prosecution Office

denouncing Insured and Principal

Which policy to cover?

TRIGGER PROBLEMS


DEFENSE COSTS

• This policy shall reimburse the defense costs reasonably charged from the Insured

and which result from covered claims [...]

• Upon Insured’s request, Insurer shall advance the payment of the defense costs

referred to above, in the hypotheses of urgent need [...]

WHAT DOES REASONABLE MEAN?


WHAT DOES REASONABLE MEAN?

FIGURES THAT SHINE - Ricardo Setti’s Article – ‘Veja.com.br.’ – August 16, 2012

The criminal lawyers of “mensalão” have no complaints about fees

[...] In a conservative calculation, the mensalão defendants are paying about 61 million reais to

avoid being convicted. In the market of the best criminal lawyers in Brazil, it is a consensus to

point out Márcio Thomaz Bastos as the best remunerated one. He is supposedly receiving 20

million reais from Banco Rural to defend José Roberto Salgado, the institution’s former director –

including a “success fee””.

Thomaz Bastos would charge even more if he had accompanied Salgado from the beginning of

the case. As he entered late, he accepted to reduce his fees. He is, at present, by far, the most

expensive criminal lawyer in Brazil [...].

Link to the article.

http://veja.abril.com.br/blog/ricardo-setti/politica-cia/entre-grandes-estrelas-e-assistentes-um-time-de-150-advogados-defendem-os-reus-do-mensalao-e-estao-embolsando-estimados-61-milhoes-de-reais/









DEFENSE COSTS

What about typically intentional crimes?

1. Excluded risks:

Intentional and fraudulent acts [...]

1.1. Crimes whose subjective element is the intention to act, that is, they do not

admit the guilty form. For instance, active corruption, money laundering, stolen

property receiving, etc.


Reimbursement/ Advance of Defense Costs

Judgment became unappealable

Return of the amounts by Insured or Principal

DEFENSE COSTS

Current policies:

• System of “giving back” after the

judgment became unappealable.


DEFENSE COSTS

• Low probability of recovering advanced defense costs;

• Need of speed in the analysis of administrative proceedings and payment of defense

costs (30 days) vs. delay in judicial proceedings course;

• Inflated proposals of lawyers' fees.


JUDGMENT – BANCO SANTOS

Insurance. Action for Collection of Insurance of Liability of Companies’ Directors and Officers

(“D&O Insurance”). Administrative Proceedings that inform administrator’s infraction to the

duties of care and loyalty. Verification of performance of fraudulent actions before the

contracting and which were not informed to Insurer (“known actions”). Absolute exclusion of

liability. Foreign doctrine precedents. Appeal rejected. (Civil Appellate Review 543.194-4/9-00.

Reporting Minister Vito Guglielmi. Judged on December 11, 2008)



Insurance. Action for Collection of Insurance of Liability of Companies’ Directors and Officers

(“D&O Insurance”). Intended advancement of defense costs for administrator’s judicial defense.

Inadmissibility. Refusal by insurers based on exclusions of ‘known actions’ and ‘deliberate acts’.

Admissibility.

Deliberately fraudulent acts performed and verified before the insurance contracting. Judicial

acknowledgment. Commitment to reimbursement that was not established in the agreement

and cannot be admitted. Appeal rejected. (Civil Appellate Review 543.194-4/9-00. Reporting

Minister Vito Guglielmi. Judged on December 11, 2008)



• Loss of guarantee due to omission in the questionnaire (asymmetry of information);

• The administrative proceedings indicated fraudulent management acts;

• Extension of the Exclusions applicable to the coverage as a whole, including for

Defense Costs;

• Advancement is only due upon insurers’ express authorization;

• Rejection of protective norms of the Consumer’s Protection Code for that actual

case.


WHAT TO EXPECT?

• Excess of market capacity

• Increase of premium for certain segments

• SUSEP’s Interference:

• Draft of Circular Letter on D&O – SUSEP – April/2013

• Environmental Complaints

• Alterations in insurance wording

• Coverage Sub-limitations

• Deeper analysis for subscription of risks

• Increase in compliance rules

Vielen Dank!

___

Andre Alarcon

[email protected]

+55 11 3356 1821

___

demarest.com.br


Aus dem Leben eines Wirtschaftsjournalisten

Uwe Ritzer, Süddeutsche Zeitung


UWE RITZER

□ Journalist und Buchautor, Jahrgang 1965

□ Seit 2005 Wirtschaftskorrespondent der Süddeutschen Zeitung, hauptsächlich für (investigative) Sonderaufgaben bundesweit.

□ Wächterpreis der deutschen Tagespresse (2013 und 2015)

□ Erhielt für ADAC-Enthüllungen den Leuchtturm-Preis des Netzwerks Recherche sowie den Helmut-Schmidt-Journalistenpreis

□ Buchveröffentlichungen:

□ „Die Affäre Mollath – Der Mann, der zu viel wusste“

□ Am 2. Mai 2016 erscheint das gemeinsam mit Markus Balser verfasste, lobbykritische Sachbuch „Lobbykratie“ (Verlag Droemer-Knaur)


Leichtes für Zwischendurch

RAe Björn Seitz & Bastian Finkel, BLD


OBLIEGENHEITEN NACH DECKUNGSGEWÄHRUNG

Eine Livediskussion…


Haftungstreiber M&A

RA Michael Jakobs, BLD

50 BLD Bach Langheid Dallmayr Rechtsanwälte Partnerschaftsgesellschaft mbB Michael Jakobs, LL.M. | 4. D&O-Meeting | Köln | 03.03.2016

AGENDA

□ Grundlagen u. Begrifflichkeiten

□ Ablauf einer Transaktion

□ Beteiligte

□ Grundlagen

□ Typische Haftungsfälle

□ Sonderfall: Management Letter

Was ist M&A?

Welche Haftungsrisiken bestehen?

Exkurs: W&I und Beraterhaftung


TEIL 1: WAS IST M&A?

BLD Bach Langheid Dallmayr Rechtsanwälte Partnerschaftsgesellschaft mbB Michael Jakobs, LL.M. | 4. D&O-Meeting | Köln | 03.03.2016 52

GRUNDLAGEN & BEGRIFFLICHKEITEN

FUSIONEN & ÜBERNAHMEN

Starke anglo-amerikanische Prägung des gesamten M&A-Marktes „Caveat emptor-Prinzip“

WER (ggf. Bieterverfahren)

WAS

Strategischer Investor

Finanzinvestor Share Deal Asset Deal


ABLAUF EINER M&A-TRANSAKTION

Interne Entscheidungs-findung

Vendor Due Diligence

Letter of Intent

Non Disclosure Agreement (NDA)

SIGNING

Kaufvertrags-verhandlungen

Kapitalmarkt-informationen

BUYER DUE DILIGENCE (insb. Legal, Tax, Financial)

Fusionskontrolle und sonstige behördliche Genehmigungen (Closing Conditions) CLOSING

(Kaufpreiszahlung)

Ablauf Garantie (ca. 2 Jahre)

Post-Merger-Integration

VERKÄUFER

KÄUFER


BETEILIGTE

□ Berater (Rechtsanwälte, WP, StB, Investmentbanken)

□ Weitere Bieter

□ Finanzierende Banken

□ Mitgesellschafter

Verkäufer

Target

Kaufvertrags- garantien

Garantie- anspruch

Management Management

Management

Käufer KAUFVERTRAG


TEIL 2: PRAXISRELEVANTE HAFTUNGSRISIKEN


HAFTUNGSGRUNDLAGEN

Geschäftsführungsorgane

□ Legalitätspflicht vs. unternehmerische Entscheidung

□ Verhaltensmaßstab: Sorgfalt eines ordentlichen und gewissenhaften Geschäftsleiters (§ 93 Abs. 1 Satz 1 AktG, § 43 Abs. 1 GmbHG).

□ Schadenersatzpflicht

□ Generalklauseln in §§ 93 Abs. 2 AktG, 43 Abs. 2 GmbHG

□ Business Judgement Rule (schon ARAG/Garmenbeck-Entscheidung), insb. angemessen Informationsgrundlage

□ Beweislast für Anwendung o.g. Sorgfalt: Vorstand, GF

□ Beweislast für Schaden: Gesellschaft

Aufsichtsorgane

□ Verhaltensmaßstab: Sorgfalt eines ordentlichen und gewissenhaften AR-Mitglieds (§§ 116 Satz 1, 93 Abs. 1 Satz 1 AktG).

□ Schadenersatzpflicht

□ sinngemäße Anwendung des § 93 Abs. 2 – 6 AktG

□ Beweislast für Anwendung o.g. Sorgfalt: AR-Mitglied


ABLAUF EINER M&A-TRANSAKTION

Interne Entscheidungs-findung

Vendor Due Diligence

Letter of Intent

Non Disclosure Agreement (NDA)

Signing

Kaufvertrags-verhandlungen

Kapitalmarkt-informationen

Buyer Due Diligence (insb. Legal, Tax, Financial)

Fusionskontrolle und sonstige behördliche Genehmigungen (Closing Conditions)

Closing (Kaufpreiszahlung)

Ablauf Garantie (ca. 2 Jahre)

Post-Merger-Integration

VERKÄUFER

KÄUFER

Haftung für Pflichtverstöße im Vorfeld einer Transaktion

Haftung für Fehler bei der Kaufpreisfindung

Haftung für fehlerhaft abgegebene Garantien (Sonderproblem: Management-Letter)


PFLICHTVERLETZUNGEN IM VORFELD EINER TRANSAKTION

Beispiele:

□ Verstoß gegen Pflichten zur Erfüllung der Ad-hoc-Publizität § 15 WpHG i.V.m. § 13 WpHG bei Tatsachen mit erheblichem Kursbeeinflussungspotential

□ Verstöße gegen das Verbot der Marktmanipulation § 20a WpHG

□ Pflichtwidrige Unterlassung von gesetzlich vorgeschriebenen Mitteilungen §§ 21 ff. WpHG

Rechtsfolgen:

□ Schadenersatz (§ 37b,c WpHG) und Managerhaftung unter den Voraussetzungen des § 93 Abs. 2 AktG


HAFTUNG FÜR FEHLER BEI KAUFPREISFINDUNG

Standardvorwurf

□ „Zu teuer gekauft“ bzw. „Zu günstig verkauft“

□ „Keine ausreichende Information“ / „Keine ausreichenden Garantien“

□ Genügt das? (OLG Nürnberg AG 2015, 91)

Pflicht zur Durchführung einer Due Diligence? / Umfang der Due Diligence

□ Nach h.M. (+), Rspr. tendenziell bejahend (OLG Oldenburg NZG 2007, 434)

□ „Alle verfügbaren Informationsquellen“ (BGH NJW 2008, 3361) – falscher Maßstab

Pflicht zur Durchführung einer Unternehmensbewertung?

□ Käufer-/Verkäuferperspektive, Bewertungsmethode und maßgeblicher Wert (obj./subj.)

□ Aber: Wert ≠ Preis! (strategische Ziele)

Schaden

□ Maßgeblichkeit des bzw. welches Unternehmenswerts?

Praxisproblem

□ Beweisführung

□ Expertise: Ordentliche Gerichte vs. Schiedsgerichte


PFLICHTVERLETZUNGEN IM ZUSAMMEN-HANG MIT GARANTIEVERSPRECHEN

□ Klassiker: Verletzung einer Bilanzgarantie

Problem: Bilanzauffüllung

vs.

Preisdifferenzschaden

(vgl. BGH NJW 1977, 1536)

□ Verletzung einer Garantie zum Nichtvorliegen von Umweltschäden


SONDERFALL: MANAGEMENT LETTER

Begriff

□ Erklärung des Managements der Zielgesellschaft über die Richtigkeit gewährter Garantien

Zweck

□ Primär: Valide Offenlegung von Informationen

□ Aber auch: Schaffung eines Haftungsregimes

Risiko (je nach vertraglicher Ausgestaltung)

□ Worst Case: Verschuldensunabhängige, unbegrenzte Haftung

□ Häufig: Regelungen zu Verschulden und Haftungssumme et al.

□ (P) „Bestes Wissen“

Unter D&O-Police versichert?

□ Gesetzliche/vertragliche Haftpflichtbestimmung?

□ Organtätigkeit?


TEIL 3: EXKURS W&I UND BERATERHAFTUNG


WARRANTY & INDEMNITY INSURANCE

Verkäufer

Target

Kaufvertrags- garantien

Garantie- anspruch

Management Management

Management

Käufer KAUFVERTRAG

Versicherer

VV

Versicherer

VV


BERATERHAFTUNG

□ Wirtschaftsprüfer (Distressed M&A-Fälle)

□ Steuerberater (Pflichtverletzungen im Zusammenhang mit Tax DD)

□ Rechtsanwälte (Pflichtverletzungen im Zusammenhang mit Legal DD)


FAZIT


ZUM REFERENTEN

MICHAEL JAKOBS, LL.M. Rechtsanwalt | Partner Theodor-Heuss-Ring 13-15 50668 Köln Tel +49 221 944027-963 Fax +49 221 944027-880 [email protected]

TÄTIGKEITSBEREICHE

□ D&O-Vers./Organhaftung

□ E&O-Haftung/-versicherung

□ Produktentwicklung/-beratung

□ W&I-Versicherung/ Post-M&A-Streitigkeiten

□ Gesellschaftsrecht

□ Bankrecht

WERDEGANG

1997 – 2005 Studium der Rechtswissenschaften an der Universität zu Köln und der Université de Lausanne, Schweiz / Rechtsreferendariat am Landgericht Köln

2006 – 2008 Rechtsanwalt bei mittelständischer Kanzlei in Köln mit Schwerpunkten Gesellschaftsrecht, M&A, Venture Capital

2007 Magister des Wirtschaftsrechts (LL.M. oec., Universität zu Köln), Schwerpunkt „Unternehmensführung"

2008 – 2010 Rechtsanwalt bei international tätiger Kanzlei/ Düsseldorf

seit 2010 Anwalt bei BLD

seit 2016 Partner bei BLD


D&O in Indien

Mrinal Ojah und Trinath Tadakamalla

Partners, Phoenix Legal, Neu Dehli

Introduction to Firm

• Focus area – insurance and reinsurance

• Act for insurers and reinsurers; sector-friendly

• Offices in New Delhi, Mumbai and Chennai

• Varied experience in handling/advising on liability claims

9 March 2016 68

Overview of Insurance Market

• General introduction • Open to overseas insurers since 1999

• FDI recently increased to 49%

• Contours of market

• Heavily regulated – IRDAI

Admitted v Non-admitted

• No clear guidance in the IRDAI Regulations

• Non-admitted insurance not permitted (implied prohibition)

• Non-admitted insurers can however reinsure Indian risks

Global Insurance Programs

• Ideal to obtain local coverage for subsidiary

• Clarify that Indian subsidiary not covered in global program

• Regulations silent on DIC/DIL covers from overseas insurers; appear impermissible

Specific Rules

• Indian subsidiary cannot pay premium to overseas Insurer

• Forex and IRDAI Regulations prevent indemnity from overseas insurers

D&O Cover – Indian Context

• Not compulsory

• Initial demand was based on overseas exposure

• Satyam scandal – 2009

• Companies Act 2013, impetus on directors and officers’ liabilities

D&O Policies In India

• Freedom to structure wordings

• Products need pre-approval of IRDAI

• Products usually driven by reinsurers’ wordings

• No court precedent on policy interpretation, reliance on English and US law

Main Policy Issues

• Non-disclosure – most D&O covers are non-rescindable now

• Notification of claims

• Consent issues and control of defence costs

• Cooperation/consultation, sharing information

Typical Claims

• Regulatory investigation/action (statutes)

• Fraud investigation/action (Companies Act)

• Employment claims (wrongful death etc.)

• Contractual disputes naming directors

Litigation Reality

• Lawyers’ hourly rates and senior counsels’ fees

• Allocation issues

• Exposure - various jurisdictions in India

• Slow pace of litigation

Post Inception: Claims Control

• Insurer’s damage mitigation

– Right to Defend: The Insurer shall be entitled (but in no case obliged) to take over and

conduct in the name of the Insured the investigation, defence and/or settlement of any claim…

– Duty to Defend:

The Insurer has the right and duty to defend any claim brought against the

Insured covered under this Policy even if the claim is groundless or fraudulent…

– Right to associate:

The Insured shall have the right and duty to defend and contest any claim.

The Insurer shall have the right to effectively associate with the Insured in the defence and settlement of any claim that appears reasonably likely to involve the Insurer.


Right to information • Normally Express Condition

Give such information and assistance as the Insurer may reasonably require to investigate losses or assess liability…

• Could be implied

Render all ‘reasonable assistance’ to insurer and ‘co-operate’ in the defence of any claim…

• Costs of Assistance


Right to information: Typical Issues

– Insured not sensitive to policy obligations – Insured’s own record keeping improper – Insured believes information requests are ‘unfair’

– Partial provision- inadequate for assessing coverage issues

– Provision not timely- e.g. post filing information provided for

records- affects rights of association

What do we do?

• Ascertain coverage

• Handholding through correspondence

• Claims monitoring

• Defence work – where there is no conflict

Thank You


Vielen Dank für Ihre Aufmerksamkeit.


ZU DEN MODERATOREN

BASTIAN FINKEL Rechtsanwalt | Partner Fachanwalt für Versicherungsrecht Theodor-Heuss-Ring 13-15 50668 Köln Tel +49 221 944027-893 Fax +49 221 944027-880 [email protected]

TÄTIGKEITSBEREICHE



□ Vermögensschadenhaftpflicht

□ Anwalts- und Notarhaftung

□ Vertrauensschadenversicherung

□ Versicherungsvertragsrecht

□ Produktberatung

WERDEGANG

1996 – 1998 Ausbildung zum Bankkaufmann

1998 – 2006 Studium und Referendariat in Köln




ZU DEN MODERATOREN

BJÖRN SEITZ Rechtsanwalt | Partner Fachanwalt für Versicherungsrecht Theodor-Heuss-Ring 13-15 50668 Köln Tel +49 221 944027-944 Fax +49 221 944027-880 [email protected]

TÄTIGKEITSBEREICHE



□ Vermögensschadenhaftpflicht

□ Vertrauensschadenversicherung

□ Versicherungsvertragsrecht

□ Produktberatung

WERDEGANG

1994 – 1999 Studium der Rechtswissenschaften, Universität Hamburg

2000 – 2002 Referendariat beim OLG Düsseldorf

2002 – 2003 Fachanwaltslehrgang für Steuerrecht bei Dr. Grannemann & von Fürstenberg




Köln Theodor-Heuss-Ring 13-15 | 50668 Köln Tel +49 221 944027-0 Fax +49 221 944027-7

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BLD International Einzelheiten zu BLD International finden Sie unter: http://www.bld.de/weltkarte.html

BLD-STANDORTE

Documents

4. BLD D&O-MEETING · BLD Bach Langheid Dallmayr Rechtsanwälte Partnerschaftsgesellschaft mbB 4. D&O-Meeting | Köln | 03.03.2016 8 BGH, Urteil vom 08.12.2015 – II ZR 68/14 WM