Let's hope it doesn't get to that point and AVZ win the battle, they are up against it as we all know.
My understanding is AVZ have significant D&O insurance cover. The question was raised at one of the roadshows of why there had been a substantial increase in the D&O premiums. The answer given was the increase in market-cap, not sure if that was the only reason for a multiple-fold premium increase, only AVZ and the insurer would know the answer to that.
If AVZ have "Side C" cover in their D & O insurance policy, potentially, claims made by SH's may be covered.
There are generally three insuring clauses in a D&O policy. D&O provides coverage to the individual Directors and Officers (Side A) or as a reimbursement to the company for its indemnification of these individuals (Side B). Entity (Side C) cover is when a claim is made by shareholders in a publicly listed company.
AVZ Price at posting:
78.0¢ Sentiment: None Disclosure: Held