• Knowing "When To Hold Them and When To Fold Them": Negotiating the Fiduciary Challenges Facing Officers and Directors Post-Insolvency
  • September 3, 2004
  • Law Firm: Sheppard, Mullin, Richter & Hampton LLP - Los Angeles Office
  • Despite the apparent upturn in the United States' economy, challenges facing officers and directors of insolvent corporations are more relevant now than ever. In connection with the recent demise of several public companies, lawsuits against officers and directors (and accountants) have become increasingly more common. Directors of financially healthy corporations are usually familiar with their fiduciary duties to shareholders. However, the expansion of those duties once the corporation enters the "zone of insolvency" can often place directors at an uncomfortable crossroads: