The top 5 takeaways from the Sequana case are:
- Directors have a duty to protect the interests of creditors when a company is facing financial difficulties or is insolvent.
- Directors must act with care and diligence in managing the company’s financial affairs and seek professional advice when necessary.
- Directors should consider options for restructuring or insolvency when a company is in financial distress.
- Directors should be aware of the potential personal liability that they may face if they fail to fulfill their duties to the company’s creditors.
- The duty to protect the interests of creditors becomes more important as the company’s financial position deteriorates.
Big case, short summary above…