Litigation aimed at company directors is on the rise and Bermuda is not immune, said the organiser of a two-day Institute of Directors (IOD) seminar titled "the director and the law'' which concluded yesterday.

Commenting on the climate of legal activity, and not specific cases, lawyer Ms Christine Patton said, "The cases of litigation are growing and affecting Bermuda directors.'' Ms Patton, a legal advisor with the Bank of Butterfield who joined the IOD over two years ago, is on the institute's board of directors.

"There is a shift toward greater accountability because of the growth in litigation, especially within the past 18 months,'' she said.

"This is why there is a demand for these seminars.'' Many Island exempt companies count Bermuda service providers among their directors.

"With that role there is a lot of responsibility,'' said Ms Patton.

Directors risk personal liability if they allow a company to trade while it is insolvent. But according to one local lawyer, who requested anonymity, insolvency can be very difficult to prove.

"By international standards, Bermuda has relatively weak laws pertaining to creditors and shareholders, especially shareholders. But even where rules are strong it is still inordinately difficult to obtain a judgment against a director,'' he said.

"Generally speaking, lawsuits are on the rise because corporate life is getting more complex,'' said IOD chairman Mr. Geoffrey Moore.

Mr. Moore, a chartered accountant and fellow of the IOD for 25 years, is president and chief financial officer at Colonial Insurance Company Ltd.

"Litigants are getting more active and demanding higher quality of corporate governance,'' he said.

Mr. Moore, former IOD vice chairman, officially became chairman last evening at the institute's annual general meeting.

The IOD, originally a UK initiative, was designed to create a central body to train directors. The Bermuda IOD has about 190 members and is an independent chapter. This past week's seminar was held at the Bermuda Insurance Institute.