Corporate Indemnification, Insurance, and Civil Law Mandates in Taiwan

The term “corporate indemnification,” conspicuously absent from Taiwan’s laws, is a term imported from the English-speaking common law countries, where it has a long history. Nonetheless, directors and officers (D&O) liability insurance policies typically provide corporate indemnification cover. Chen Hui-ling explains in “Corporate Indemnification, Insurance, and Civil Law Mandates in Taiwan” how relations of mandate under Taiwan’s Civil Code provide a basis for directors and officers to claim indemnification from their corporate employers when a director or officer is sued in the course of her duties. Although the Taiwanese courts still need to give more precise guidance on how mandate relations apply to litigation against directors and corporate officers, the legal framework to support D&O Policy claims is already present.