The “Assurance responsabilité civile du mandataire social” (RCMS) is a liability insurance policy that covers a company’s executive officer in case of mismanagement, failure to comply with the law, or violation of the articles of association. The RCMS is paid for by the company to protect the executive officer against any legal action taken against them. The money recovered from the insurance policy following a legal action against the executive officer is paid to the company that has suffered damages. Therefore, the RCMS insurance policy protects the company’s interests.
Assurance responsabilité civile du mandataire social (RCMS)
- author : Dr. Hajar Malekian
- Category : commercial, glossary
- Reading time : < 1 minute
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