Keep on the right side of the law

WHETHER you like it or not, the legal process hangs over your head like the proverbial Sword of Damocles as soon as you become a director. (In the ancient Sicilian story, Damocles was a courtier who coveted King Dionysius' vaulted position, but soon realised that the role came with a gleaming sword suspended over the throne by a single horsehair.)

A director has access to professional advisers such as lawyers, accountants and other consultants for any issue that may threaten that horsehair, and coverage for such professional costs should be clearly set out in the terms and reference of every board.

Nevertheles…