Subsidiary Formation and Acquisition Provisions

May 3, 2011

The corporate entity rarely exists in a static state. The company may have opportunities for expansion through acquisitions of other outside entities. It may be necessary or desirable to form new subsidiaries, and these subsidiaries may also seek to take advantage of acquisition opportunities. Most D&O policies impose specific restrictions or special reporting requirements when insureds engage in this type of activity.

Subsidiary Formation/Acquisition

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