This Factsheet is Courtesy of McCann FitzGerald LLP
This Factsheet looks at 'Directors’ Duty to Have Regard to the Interests of Creditors: Irish and English Law Contrasted' and offers some concluding thoughts on the issue. In both jurisdictions the general consensus was that where a company is insolvent, the fiduciary duty of its directors to act in the interest of the company (Irish law), or in the way they consider, in good faith, would be most likely to promote the success of the company in the interests of its members as a whole (English law), altered such that directors were required to treat creditors' interests in priority to shareholders' interests. Directors must consider the interests of creditors as a whole, and not just the interests of any individual creditor or class of creditors. The legal obligation on directors was considered to be broadly similar where a company was close to insolvency.