Duties of the Directors of Companies in Financial Difficulties

  • Oct 2010
  • Client publication/article

This memorandum considers the duties and responsibilities of directors of public and private companies where a company is in financial difficulties.

Topics include:

  • the need for directors to minimise the potential loss to creditors once there is doubt as to a company's solvency
  • the regulatory, statutory and common law duties of directors 
  • how a breach of duty can lead to personal liability and possible disqualification 
  • the Court's power to reverse some of the company’s transactions so that the parties revert to the position they would have been in if the transaction had not been entered into 
  • the directors' duties to group companies and issues of concern when a company has its main business interests in another EU country

 

 
 

Contacts

 

Ian Hodgson (partner), Sarah Paterson (partner), Lynda Elms (professional support lawyer)

 
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