D&O insurance and the new BCC
06 November 2019
On 1 May 2019, the much discussed new Belgian Code on Companies and Associations (the new BCC) entered into force in Belgium. This article focuses specifically on the new rules on directors' liability that are applicable to the members of the many governance structures available under the new BCC, and the impact on D&O insurance.
The new rules on directors' liability are immediately applicable (i) to legal entities that are incorporated as from 1 May 2019 and (ii) to existing legal entities that have explicitly chosen to be subject to the new BCC with immediate effect. For existing legal entities, the new rules on directors' liability are applicable as from 1 January 2020. The new BCC stipulates that the triggering point for determining whether the old or new BCC applies is the date on which the director committed a wrong.