M A Bernstein - Directors & Officers

	M. A. Bernstein & Company
	Directors & Officers

Directors & Officers Insurance provides a broad range of coverage for the problems unique to the management of today's complex business institutions. Directors are charged expressly by the SEC and generally by the public with the responsibility to guide the company in the best interest of the shareholders. Their progress is subject to continual scrutiny, largely through the general and financial press, and the broadcast media. Allegations are easily made, perceptions are fragile and often judgmental, and litigation can be quixotic, or frivolous, and expensive in any event.

Causes of loss can include:

Failure to act to the benefit of the shareholders or the public
Price fixing
Failure to supervise properly
Discrimination in a variety of ways
Misinformation to banks and other lenders
Rights of minority shareholders (including ESOPS and employee-shareholders)
Conflicts of interest

In the area of directors' and officers' responsibilities a proactive attitude and program is essential. Such an approach acts as a prevention of situations which could cause loss and also to enable an effective defense in the event of allegations. At M. A. Bernstein & Company our primary interests include the education and self monitoring of the board of directors so that they can discharge their obligations to the best advantage of the company's shareholders and customers, its community and the general public.

We encourage you to submit any comments or questions, specific or general, dealing with these obligations. We will regularly post examples of current events of interest to the insurance and financial community.

For further information contact us.