Directors’ and officers’ risk landscape has witnessed rapid evolution in Asia in recent times. While the universal trends such as the impact of pandemic, environmental and other ESG issues and growing concerns around cyber claims dominated this transition, closer to home, a spate of changes to the regulatory environment acted as a key catalyst.
Some of the key trends witnessed in Asia include the following:
China: Effective 1 March 2020, the revisions to Securities Law of People’s Republic of China (PRC) came into effect. These revisions further improved the basic system, embodying the direction of marketisation, rule of law, and internationalization. Amongst the various highlights are the key revisions around improving the investor protection system, significantly increasing the cost of securities violations and further strengthening of information disclosure requirements.
51% of respondents considering that the risk was very significant or extremely significant
These changes increase the uncertainties around potential risks for directors and officers considerably. There has been a recent ruling which marks the first ever securities class action ruling in China and is expected to have a long-lasting effect on D&O litigation trends in the country. Despite these developments, it is notable that the risk of shareholder actions/disputes was not highly ranked by respondents in Asia, with only 51% of respondents considering that the risk was very significant or extremely significant.
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| Title | File Type | File Size |
|---|---|---|
| Regional overview, Asia | 1.8 MB |
