Obligations of directors of an enterprise in the period approaching the insolvency of that enterprise

1. This section focuses on the obligations that might be imposed upon those responsible for making decisions with respect to management of an enterprise when that enterprise faces imminent insolvency or insolvency becomes unavoidable. The aim of imposing such obligations, which are enforceable once insolvency proceedings commence, is to protect the legitimate interests of creditors and other stakeholders and to provide incentives for timely action to minimize the effects of financial distress experienced by the enterprise.

Sustainable Development Goals:

Decent Work and Economic Growth

Peace, Justice and Strong Institutions