15 Sept 2011
STEIGRAD & ORS V BFSL 2007 LTD & ORS HC AK CIV-2011-404-611
- Citation
- openlaw-697e9c7a_1814_4ebd_8a4d_93d36586fa23.pdf
- Court
- High Court
The s 9 statutory charge on insurance moneys prevents the directors from accessing the D & O policy to meet defence costs because s 9 charges all insurance money that is or may become payable in respect of liability to pay damages or compensation; payments by QBE for defence costs with notice would deplete the pool available to civil claimants and thereby frustrate the statutory charge, so QBE must preserve the fund for claimants until liability and entitlement to cover are established.