Philadelphia (Sept. 23, 2003) -- A new group geared toward helping audit committee members and the public companies they monitor meet their responsibilities under Sarbanes-Oxley could lower the costs of directors and officers liability insurance premiums for both public companies and independent directors, according to its founder.
Securities law expert Frederick D. Lipman, a partner at the law firm Blank Rome LLP and founder of the newly formed nonprofit Association of Audit Committee Members Inc., said he’s been told by insurance brokers that companies that pay to have their audit committee members join the association may be able to lower their D&O policy premiums, the Philadelphia Business Journal reported. Lipman reportedly said he’s been told that insurance underwriters may be willing to reduce premiums if a company works to educate its audit committee.
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