Introduction and purpose of part four

The purpose of part four is to identify basic principles to be reflected in the law concerning directors’ obligations in the period approaching insolvency. It consists of two sections. Section one addresses the key elements of directors’ obligations in the period approaching insolvency. It does so in the context of an individual company when that company faces imminent insolvency, or its insolvency becomes unavoidable. Building on section one, section two addresses how some of the recommendations contained in section one could be revised for application to directors in the enterprise group insolvency context. It identifies the extent to which a director of an enterprise group member may take account of considerations beyond the enterprise group member he or she manages in the period approaching insolvency and the safeguards that should apply. It also includes additional recommendations to address situations when a director faces a conflict in discharging the obligations owed to the different enterprise group members.

Sustainable Development Goals:

Decent Work and Economic Growth

Peace, Justice and Strong Institutions