Tyler P. Evans
In light of a recent swell of bankruptcies in Oklahoma and surrounding areas predominantly triggered by the turbulent energy market directors should fortify their understanding of fiduciary duties owed to companies in times of financial distress.
As a general rule, directors are charged with maximizing the value of the company for its residual risk-bearers, which are typically the companys equity-holders. No direct fiduciary duty is owed to creditors of solvent companies, who instead protect themselves through contractual arrangements governing their relationships with firms.
Interestingly, under Delaware law, once a company is insolvent its directors continue to owe fiduciary duties solely to the comp…
Read the full article at: http://journalrecord.com/2016/09/21/gavel-to-gavel-the-insolvency-dilemma-for-directors-opinion/
