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Duties of The Directors

Duties of The Directors 2025

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The document outlines the duties and responsibilities of directors of companies facing financial difficulties under English law. It emphasizes that while a company is solvent, directors owe their duties to the company and its shareholders, but once insolvency is in question, they must also act in the interests of creditors to minimize potential losses. The memorandum details common law, statutory, and regulatory duties, potential personal liabilities for breaches, disqualification risks for misconduct, and considerations regarding vulnerable transactions. It also discusses the implications for group companies and cross-border insolvency proceedings.

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