At a time when the actions of directors, both collectively and individually, have received considerable attention in both the academic and public press, the need for directors to understand their duties, and the steps that can be taken to fulfill their obligations and minimise potential liabilities, becomes especially important.
This article considers:
- The duties imposed on directors of private and public limited companies by law and equity.
- How these duties change and affect directors’ decision-making processes in the moments leading up to insolvency, known as the “twilight zone”, and on insolvency.
- The potential liabilities that directors face.
This article does not expressly consider the duties and liabilities associated with trustees, and other corporate forms, although there is, in certain instances, a degree of convergence.
This article first appeared in the April 2018 issue of PLC Magazine.