In the today’s globalised economy, companies engage in business around the world, contracts are entered into with business partners across jurisdictions and the companies’ creditors and debtors are spread across the world and assets are located in more than one jurisdiction. The globalization of these business activities creates additional challenges for companies facing financial difficulties. On the other hand, insolvency and restructuring laws are mostly territorial which makes managing cross border insolvencies a challenging task.

This Directors Liability Guide focuses on the duties of the directors of distressed companies and is aimed at providing the members of the board of directors with guidance on how to best weather the storm. It is important to note that the challenges faced by companies in financial distress vary from company to company and from jurisdiction to jurisdiction. Therefore, the members of the board of directors are well advised to seek independent professional advice, to identify potential pit falls and director liability issues at an early stage.