Colorado Goldfields Inc. (fka CGFI)

[sanbrunobaby]

Thanks for taking the time in your response

Yes good point no D & O insurance wil protect against illegal acts, or acts that are detemriend to have violated rules against self-dealing etc. If restrictions were removed from stock or stock issued to related parties and not disclosed there could be some serious issues.And personal assets in may cases will not be protected in all cases.

I know of no requirement for D & O insurance on OTC or on the exchanges, though it is quite common someone with assets will lrefuse a director position unless such insurance in place.


However D & O for a public company isnt based solely on assets or income of company. For example if a mining company which has no assets on balance sheet per US accounting rules,a company could still apply for D & O insurance. And yes quite typically one of main reasons for such policies is to cover legal expenses. These policies as they apply to public companies are different than those which apply to private organizations. These are not the typical start-up policies on sees for private businesses.Very specialised stuff,and from what I understand very few insurance companeis offer these sort of policies for public companies.