Starting your own company can be an exciting yet complicated venture. There are seemingly endless registration forms, trademark applications and policies that need to be put in place before you are able, or in some cases, licensed, to operate. All of these are necessary in order to protect you and your company in the future. As the director of the company, you want to be sure that you are protected If anything goes wrong. In order to do so, you should acquire a deed of indemnity. In this article, Lancaster Law and Mediation (LLM) will discuss what exactly a deed of indemnity is, why it is important to have, and how, by acting as your commercial lawyers, our team can assist you in preparing and submitting one.
What Exactly is a Deed of Indemnity?
Also known as a deed of access and indemnity, or a deed of insurance, a deed of indemnity is a legal agreement between a company and a company director or company officer. This legal agreement details how a company will secure the director against legal liability if required in the future. More simply put, the deed ensures that the director is covered for costs incurred while they are performing their role at the company.
Why Should a Director Have a Deed of Indemnity?
As the director of a company, you are responsible for a number of duties and obligations including acting in good faith and for proper purpose, acting with reasonable care and diligence, avoiding misuse of information and preventing conflicts of interest. If you are to breach any of these, you may become personally liable for the debts of the company. A deed of indemnity ensures that the company seeks appropriate insurances and/or covers the legal costs. The scope in which they cover the costs may vary depending on the agreements within the deed.
Commercial Litigation Lawyer Sydney: Let LLM Help
At Lancaster Law and Mediation, when employed as your commercial dispute lawyers, we will ensure you are properly prepared for any potential legal matters that may arise in the future. Over decades of experience, we have proven our reliability and dedication to the work we do, all of which is backed by our client satisfaction. For one of the best commercial law firms Sydney has to offer, hire LLM today.