Publication Type
Blog Post
Version
acceptedVersion
Publication Date
1-2021
Abstract
In a recent article, I analyse the primary regulatory models of directors’ duties in the zone of insolvency observed internationally. From a sample of more than 20 countries from Asia, Australia, Europe, Latin America, Africa, and North America, I distinguish six primary regulatory models: (i) the imposition of a duty to initiate insolvency proceedings, generally found in Europe; (ii) the imposition of a duty to recapitalise or liquidate the company, typically existing in Europe and Latin America; (iii) the imposition of duties towards the company’s creditors, including the duty to minimise losses for the creditors existing in the United Kingdom; (iv) the imposition of a duty to prevent the company from incurring new debts, existing in countries like Australia and South Africa; (v) the imposition of a duty to prevent the company from incurring new debts that cannot be paid in full, existing in Singapore and New Zealand; and (vi) the imposition of a duty to keep maximising the interest of the corporation, as it exists in Canada and the United States.
Keywords
Corporate insolvency, Directors' duties, Ownership structure
Discipline
Commercial Law
Research Areas
Corporate, Finance and Securities Law
Publisher
Edward Elgar
Citation
Aurelio GURREA-MARTINEZ.
Towards an optimal model of directors’ duties in the zone of insolvency: An economic and comparative approach. (2021).
Available at: https://ink.library.smu.edu.sg/sol_research/3645
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://blogs.harvard.edu/bankruptcyroundtable/tag/directors-duties-in-the-zone-of-insolvency/