Articles by author
Wrongful trading and the creditor duty in refinancing scenarios: uneasy bedfellows?
The decision in Re BHS Group Ltd shows that directors of companies in distress will have to navigate both the creditor duty and potential wrongful trading liability. This article explores how the creditor duty and wrongful trading liability sit together and offers practical advice for directors seeking to navigate the two, particularly in refinancing scenarios.
27 FEB 2026Carillion: a director’s strict duty to know the company’s true financial position?
The Secretary of State recently argued in high profile disqualification proceedings that directors owe a freestanding, strict legal duty to know a company’s true financial position at all times while holding the office of director. This article argues that this position is clearly wrong as a matter of law, would be inconsistent with the directors’ duties in the Companies Act 2006, and would be fundamentally impractical and impossible to comply with.
1 JAN 2024
