#I am assuming
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I imagine that if the insurance company had to pay out based upon wrongdoing by
the officers, they would then pursue those officers – I am assuming this is in
the form of an bond, that Gould and Ali are bonded versus insured. A full
financial disclosure which went back far enough could prove embarassing. When
you go to the measures that Commodore has to obfuscate your corporate
structure, you are generally trying to become judgement-proof and the hopes of
creditors recovering any substantial portion of what is owed are just hopes.
Given a complex corporate structure could insulate the officers from civil
action, is it possible that they fear something else?
I am by no means a qualified legal authority.
However, usually insurance is for things that could happen. If the directors
bought more insurance, (and one wonders why they purchased 3 years worth, when
they were about to liquidate), with the knowledge that they had done something
legally wrong, you can bet the insurance company would go after them for fraud.
Just the same as if you bought insurance and then ran your car into a tree to
collect.
We bond (insure) our people who handle money against theft, embezzelment (sp?)
etc. When one of them did steal, we got the money back from the insurance
company, and then the company went after him.