Determining Insolvency: A Critical Duty for Directors at Distressed … – JD Supra

Summary If a corporations directors fail to identify the pivotal point at which their company becomes legally insolvent, they can be held personally liable for breaching their fiduciary duties to the corporations creditors. The Upshot A corporations directors owe a fiduciary duty to its lenders from the moment the corporation qualifies as legally insolvent. Determining…