When a company is in financial distress, directors face difficult choices. Should they trade on to try to “trade out” of the company’s financial difficulties or should they file for insolvency? If they act too soon, will creditors complain that they should have done more to save the business? A recent English High Court case raises the prospect of directors potentially being held to account for decisions that “merely postpone the inevitable.”
Hong Kong, United Kingdom, Insolvency & Restructuring, Litigation, Trade & Customs, Hogan Lovells, Companies Act 2006 (UK)