A-32 - Act respecting insurance

Section 56 Disposition versions

1996-12-23

56. An insurance company shall assume the defence of its directors or officers prosecuted by a third person for an act done in the exercise of their duties and shall pay any damages awarded as compensation for any injury resulting from that act, unless they have committed a grievous offence or a personal offence separable from the exercise of their duties.

Notwithstanding the foregoing, in a penal or criminal proceeding the company shall assume only the payment of the expenses of its directors or officers if they had reasonable grounds to believe that their conduct was in conformity with the law, or the payment of the expenses of its directors or officers if they have been freed or acquitted.

A company shall assume the expenses of its directors and officers if, having prosecuted them for an act done in the exercise of their duties, it loses its case and the court so decides.

If the company wins its case only in part, the court may determine the amount of the expenses it shall assume.

A company shall assume the obligations contemplated in this section in respect of any person who acted at its request as director or officer for a legal person of which it is a shareholder or creditor.

1974, c. 70, s. 56; 1984, c. 22, s. 24; 1996, c. 63, s. 80, s. 86.

1984-06-20

56. An insurance company shall assume the defence of its directors or officers prosecuted by a third person for an act done in the exercise of their duties and shall pay damages, if any, resulting from that act, unless they have committed a grievous offence or a personal offence separable from the exercise of their duties.

Notwithstanding the foregoing, in a penal or criminal proceeding the company shall assume only the payment of the expenses of its directors or officers if they had reasonable grounds to believe that their conduct was in conformity with the law, or the payment of the expenses of its directors or officers if they have been freed or acquitted.

A company shall assume the expenses of its directors and officers if, having prosecuted them for an act done in the exercise of their duties, it loses its case and the court so decides.

If the company wins its case only in part, the court may determine the amount of the expenses it shall assume.

A company shall assume the obligations contemplated in this section in respect of any person who acted at its request as director or officer for a corporation of which it is a shareholder or creditor.

1974, c. 70, s. 56; 1984, c. 22, s. 24.

1977-12-31

56. Every director elected by the shareholders shall at all times while in office own absolutely and in his own name shares of the company or be a director or an officer of a company that holds shares in the company.

No person shall be elected director by the participating policyholders unless he is the holder of a participating policy of at least $4,000 capital issued by the company in question, on which no premium is due.

Every director failing to meet the provisions of this section shall from such time forfeit his office of director.

1974, c. 70, s. 56.