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Directors of Companies in Financial Difficulty

Director Factsheets

This Director Factsheet is courtesy of McCann FitzGerald

Under the Companies Act, it is the responsibility of the directors to ensure their company keeps proper books and records to enable “at any time the assets, liabilities, financial position and profit or loss of the company to be determined with reasonable accuracy”.

This briefing looks at points to be considered for determining the health of a company, the duties of directors when insolvency is foreseeable, the types of sanctions that can apply to directors who are found to have acted in ways contravening the interests of these duties, and ways in which a board might act in order to mitigate these risks.