This is no doubt about it, being a director in a company facing difficulties is a complex and dangerous task, but one notch higher in the danger stakes is being a director of several companies belonging to the same group facing difficulties.
Directors are often in the middle of a power game between various stakeholders, whether they are creditors or shareholders, who nowadays have no hesitation in putting pressure or even in suing them to have them held liable for breach of their fiduciary duty. In this context, a director having several mandates in the same group of companies may be in an unworkable situation as the corporate interests of the various entities of the group may not coincide.
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