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Mondaq – 26th Oct 2022
Why is the decision important?
For the first time, the Supreme Court has considered whether there is a common law duty on directors to act in the interests of creditors when a company faces insolvency but is not yet in an insolvency process (the so-called twilight zone) (the Creditors’ Duty).
Unanimously agreeing that such a duty does exist, the judgment provides important guidance on when that duty arises and what it requires of directors.
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