TITLE

Director Of a Troubled Company? STAY ALERT!

AUTHOR(S)
Williams, Greg T.; Greger, Michael S.
PUB. DATE
March 2003
SOURCE
Financial Executive;Mar/Apr2003, Vol. 19 Issue 2, p20
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses the responsibilities of corporate directors when the firm approaches insolvency. Normally directors have a fiduciary responsibility to act on behalf of shareholders, but creditors' interests can begin to take precedence in firms experiencing severe financial distress. In some states directors can be found liable for failure to protect creditors. The author discusses two relevant court cases, as well as standards courts use to determine whether a firm is nearing insolvency. Advice for directors is also presented.
ACCESSION #
9321522

 

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