John Harvey

Supreme Court Confirms Creditors Duty For Directors

Supreme Court Confirms Creditors Duty For Directors

The UK’s Supreme Court has dismissed a claim calling for the law to be changed to force company directors to start taking creditors into account at the first risk of insolvency. The ruling reaffirms the current position in law in stating that creditors' interests duty arises when the directors know or ought to know the company is insolvent or bordering on insolvency, or insolvency is probable.