Monday, November 19, 2018

Selective payment of creditors Directors of companies in financial distress should take difficult decisions in order to survive. Part of a rescue attempt can be selective payment, creditors that the company needs to secure its existence, as first payment. Recently in a ruling, the Court in ‘s-Hertogenbosch assessed the point at which a director will [...]

To be successful, directors often take difficult decisions. The director therefore has a high degree of autonomy. A director shall be accountable only in retrospect about his actions affect the general meeting of shareholders. This is logical, because there is a certain freedom that comes with successful control. But governing also brings risks with it. [...]