Boned1, D&O doesn't cover illegal acts, but illegal acts in this context means crimes. ASIC may bring an action against a director for a criminal breach of the Corporations Act (such as insider trading) but a shareholder can only bring a civil action, which is covered by the D&O.
While some may take the view that D&O lets a director get away with it, without D&O fewer actions would be brought against directors because there is always doubt as to the capacity of a director to pay up on a judgement.
ASIC can also obtain an order banning a person from being a director for a specified period.
AVX Price at posting:
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