Directors – How to avoid personal liability in times of financial difficulty
Economic downturns typically give rise to increased insolvency proceedings and stakeholder-driven litigation (as described in our recent briefing). The current economic circumstances are, therefore, likely to lead to greater scrutiny on director conduct. This briefing looks in more detail at potential risk areas before offering practical guidance on what directors can do to protect themselves and the companies for which they act, particularly in circumstances where a requirement arises to have due regard to creditors’ interests.