Restructuring Environment – Section 155
Genoa Underwriting Managers, on behalf of Safire Insurance Company Limited, offers a bespoke Professional Indemnity Insurance Policy to cover negligence by an Section 155 Appointee.
A Section 155 Compromise is a compromise reached between a debtor company and its creditors. Also known as an informal mechanism of restructuring a company’s obligations to its creditors, established under Section 155 of the Companies Act, No 71 of 2008 (“the Act”).
As the company owes creditors money and faces financial difficulties it is called and referred to as the “debtor company”.
Once a compromise is proposed by the debtor company or its liquidator (if liquidation preceded the proposal), creditors must vote on the proposal and the court must thereafter make the compromise an order of court.
A Receiver is appointed by a Court (“the Appointee”) to administer the claims of creditors of the debtor Company set out in the proposal/ scheme of compromise.
WHY CHOOSE GENOA?
As Genoas footprint in the liability space continues to grow from strength to strength, we thought we would share with you why more and more brokers are choosing to work with us as their partner of choice:
Our Underwriters are committed to providing our clients with superior turnaround times when issuing quotations and schedules of cover
Our underwriters are experts in their respective fields and are able to offer our clients technical advice which helps empower them to secure an account
We have strong working relationships with the top re-insurers in the country including Munich Re and Swiss Re who support all of our Professional Indemnity products
Through strategic reinsurance partnerships we are able to offer competitive market premiums
Our policies include a number of meaningful extensions that offer true value to our thousands of Insured clients
Our Insured Practitioners are represented by the top law firms in the country, including firms like Clyde & Co, Garlicke & Bousfield, Mac Robert Attorneys, Norton Rose Fulbright and Webber Wentzel
OUR COVER CAN INCLUDE:
The Professional Indemnity cover is underwritten on a claims made basis and is designed to indemnify the Insured in respect of his/ her/ their legal liability to pay compensation (including interest, claimant’s costs, fees and expenses) as a result of actual or alleged act(s), error(s) or omission(s) amounting to negligence in the exercise of his/ her/ their powers, performance or functions in office as Appointee(s) in the execution of the Court Order, within the territorial limits, on or after the Inception/Retroactive Date shown in the Schedule.
Fidelity Guarantee Cover
Fidelity Guarantee cover may also be selected under the Policy, and this Section covers loss of money and/or other property belonging to the Debtor Company or for which it is responsible, arising from:
1) theft by an Appointee or nominated Subcontractor; or
2) fraud or dishonesty by an Appointee or nominated Subcontractor.
Cover is specifically on a Named Person Basis.
Need this cover?
Our team of Broker Consultants are ready to answer any questions you may have