The Post Office enquiry heard from Paula Vennells, ex-CEO of Post Office Limited, recently. The enquiry was probing what seems to be an inevitable number of breaches of her duty as a director. Her circumstances are a good example of how senior leaders of law firms can get into difficulty and how breaches occur, and also how the Insurance sector acts to protect legal sector business leaders who fall foul of the regulations. Here are some of the issues which arose and which translate directly to law firm management and leadership;

You must act in the company’s best interests at all times.
You must consider the consequences of decisions, including the long term
You must take into account the interests of the firms employees.  

There is an ongoing need to support business relationships with suppliers, customers and others   
Your actions must take into account the impact of the firms operations on the community and environment 
You must uphold the company’s reputation for high standards of business conduct 
Your actions with all members of the company must be fair
You must not allow other people to control your powers as a director. You can accept advice, but you must use your own independent judgement to make final decisions 
You must perform to the best of your ability – and ignorance is not a defence.

Directors and Officers Liability (also known as management liability) Insurance is designed to help protect law firm managers when they inadvertently transgress these situations. 

For more information contact us on info@qualitypi.co.uk

QPI – Quality, Professionalism, Integrity