Entity Wrongful Act (Securities/Company) (D&O)

An Entity Wrongful Act is conduct blamed on the company itself, as a legal entity. It differs from the personal conduct of its directors and officers. This idea sits at the centre of Side C cover. Side C is also called entity securities liability. It protects the company against claims tied to securities. Examples include false statements in a prospectus, disclosure failures, or market manipulation blamed on the company. In Australia, a company can face claims under the Corporations Act 2001 (Cth). These claims cover misleading or deceptive conduct linked to securities. This liability is separate from any liability of individual directors. An Entity Wrongful Act can also trigger cover under Employment Practices Liability. This applies when the company is sued for wide-scale discrimination, harassment, or unfair employment practices. This cover reflects a trend. Regulators and other claimants increasingly target companies directly, alongside individual directors.

An Entity Wrongful Act is conduct blamed on the company itself, as a legal entity. It differs from the personal conduct of its directors and officers. This idea sits at the centre of Side C cover. Side C is also called entity securities liability. It protects the company against claims tied to securities. Examples include false statements in a prospectus, disclosure failures, or market manipulation blamed on the company. In Australia, a company can face claims under the Corporations Act 2001 (Cth). These claims cover misleading or deceptive conduct linked to securities. This liability is separate from any liability of individual directors. An Entity Wrongful Act can also trigger cover under Employment Practices Liability. This applies when the company is sued for wide-scale discrimination, harassment, or unfair employment practices. This cover reflects a trend. Regulators and other claimants increasingly target companies directly, alongside individual directors.