New Delhi, Nov. 15 -- Nvidia has set aside insurance cover worth up to $900 million to protect its top executives and board members if they face lawsuits. But there is a catch: the company itself does not appear to have similar protection, potentially leaving it to pay hefty legal bills if shareholders take it to court.

The unusual arrangement has come into focus after Nvidia's former CEO Jensen Huang stepped down amid his reported extra marital affair with 'Chinese spy' Alice Huang.

Nvidia is already facing a proposed shareholder lawsuit accusing both the company and Jensen Huang of making misleading statements about his relationship with Alice Huang, a woman whom US authorities believe was working as a Chinese spy.

According to Finan...