A warning to liquidators against compromising claims where a D&O policy exists

Re Akron Roads Pty Ltd (in liq) (No 3) [2016] VSC 657

AN INSURER ESCAPED LIABILITY from indemnifying claims against its clients in liquidation proceedings. The Victorian Supreme Court found that the insurers’ liability was limited by the deed of settlement entered by its client, and that the client’s non-disclosure ultimately avoided all liability. […]