Manager abroad: making decision gets more risky. Which solutions?

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Big or small business does not make any difference: in case of fault, even in good faith, we legally have to pay with our own pocket. Even if we are abroad.

Increasing risks in businesses: executives and managers always fear the most to occupy a top position within the company.

This is the result of a survey conducted by Clifford Chance, one of the most famous London based law firms: considered the increasing of responsibility on their shoulders, 58% of the attendees said were reluctant to join the company’s board.

This trend, which has began with the crisis of 2008, has been exacerbated by the introduction of the individual managers liability, together with the recent extension of the criminal company’s liability to crimes against the environment.

Different countries we are, different legislation we face.

Not understanding neither the language nor the local legislation is an unpleasant and costly risk.

The report tells that both international regulations and the intricate (and I might add incomprehensible!) skein of newly introduced national laws and local regulations expose the business’ executives to account for their actions in the country where they have to make crucial decision to run the firm.

Labour trials increase. More and more time spent in court.


The graphic shows that labour trials brought by workers against companies are increasing. Not only unsatisfied competitors and suppliers, but also an employee may take the court action in his native country. The 39% of the surveyed companies have reported a significant increase of their legal fees to defend themselves abroad.

Owners of small companies who have just approached a new country or medium size firms’ managers since many years in a certain country are aware that legal fees in a foreign court may cost so much money. Not counting the costs of translation of the entire trial which may last for years and years!

Buying a local“Directors and Officers” coverage in the Country where we work, let us save money:

  1. on the insurance premium:  this kind of insurance, concluded “on spot”, with a local insurance company, is cheaper than a“worldwide ombrella”. Taxes on premiums in some Eastern European countries are very low or even pair to zero.
  2. on legal costs: the lawyer is paid directly by the insurer. The insurance company shall appoint a legal advisor and ensure the payment of all consultancy fees.
  3. on translations: the lawyer chosen by the insurance company is a local professional, so he speaks the same language of the Country Court and he may improve management and control of the legal services in the region while reducing related costs.

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