Towards an optimal model of directors' duties in the zone of insolvency: An economic and comparative approach

• Main Author: Aurelio GURREA-MARTINEZ
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Directors’ duties; zone of insolvency; shareholder opportunism; creditor protection; Business Organizations Law; Commercial Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/3642; https://ink.library.smu.edu.sg/context/sol_research/article/5600/viewcontent/14735970.2021_pvoa.pdf
• Institution: Singapore Management University

When a company becomes factually insolvent but it is not yet subject to a formal insolvency proceeding, the shareholders - or the directors acting on their behalf - may engage, even in good faith, in various forms of behaviour that can divert or destroy value at the expense of the creditors. For thi...