Duties of directors in the zone of insolvency – International Law Office (registration)

Generally, directors are focused on making a success of the business to which they are appointed and the prospect of insolvency and the potential for personal liability often seems remote. Indeed, many directors will never have to face the difficult decisions associated with a struggling business. However, when they do, they often rely on the advice of experienced insolvency professionals.

The High Court of Justice, Chancery Division recently reconsidered the law on wrongful trading, personal liability and the defences available to directors. In In the matter of Ralls Builders Limite…