Summary
TE Connectivity plc (formerly Tyco Electronics Ltd.) filed an 8-K on October 16, 2009, to report the entry into a new form of indemnification agreement with its Board of Directors. This change follows the company's recent redomiciliation from Bermuda to Switzerland. The new agreements are designed to provide directors with the maximum legal protection available under Swiss law for their service to the company. These provisions are intended to ensure that directors are covered for losses, liabilities, and expenses incurred in connection with their roles, including advancement of expenses and coverage under liability insurance.
Key Highlights
- 1Tyco Electronics Ltd. has adopted a new form of indemnification agreement for its Board of Directors.
- 2The new agreement is governed by Swiss law, reflecting the company's recent change of incorporation from Bermuda to Switzerland.
- 3The primary purpose is to provide directors with the maximum available legal protection.
- 4The agreement covers indemnification for losses, liabilities, judgments, fines, penalties, and settlement amounts related to director duties.
- 5It includes provisions for the advancement of expenses incurred by directors in connection with covered proceedings.
- 6The company will ensure directors are covered under its existing liability insurance policies.
Frequently Asked Questions
The main event is the entry into a new form of indemnification agreement with the members of the Board of Directors of Tyco Electronics Ltd. (now TE Connectivity plc).
The change is driven by the company's recent redomiciliation from Bermuda to Switzerland. The new agreements are intended to provide directors with the maximum protection available under Swiss law.
The agreements offer broad protection, including indemnification for losses, liabilities, judgments, fines, penalties, and settlement amounts incurred in connection with their service as directors. They also provide for the advancement of expenses and ensure coverage under the company's liability insurance.
This filing primarily addresses corporate governance and director protection. While it aims to attract and retain qualified directors by mitigating personal risk, there is no immediate direct financial impact on the company's earnings or balance sheet for investors to assess from this specific filing.