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Supreme Court reviews directors' duties - DLA Piper insights

Fuseworks Media
Fuseworks Media

The Supreme Court has recently released a decision on directors' duties, which should serve as a timely reminder to all directors of their duties under the Companies Act in circumstances of insolvency. Continuing to trade while insolvent will be a breach of your duties, even if you believe that overall creditors may be better off or the extent of losses will be reduced. It is however welcome confirmation for liquidators that the Courts will enforce the provisions of the Companies Act based on the clear wording of these sections.

With the Covid-19 safe harbours expiring on 30 September 2020 directors need to be more mindful of their duties, particularly if the company is insolvent or near-insolvent.

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