Companies in distress: directors’ duties and helpful tools
When a company is in financial difficulty, the responsibilities and duties of its directors can change, depending on the financial position of the company. There are scenarios in which directors must have regard to the interests of creditors and potentially even prioritise those over the interests of shareholders. If the applicable duties are not properly discharged, directors can face personal liability and/or disqualification. The CMS briefing, Companies in distress: directors’ duties and helpful tools, outlines the risks for directors, practical steps that can be taken to avoid personal liability and the tools available to help with restructuring and rescue of companies in distress.
Companies in distress: directors’ duties and helpful tools
Our Restructuring & Insolvency team cover all aspects of corporate restructuring and insolvency. Find out more about our capabilities:
