Clarifying D&O Fiduciary Duty To Creditors In Calif.

Law360, New York (November 30, 2009, 3:06 PM EST) -- The Sixth District Court of Appeal, resolving a previously unanswered question in California, has drawn a bright line shielding company directors and officers from personal liability arising from creditor claims of breach of fiduciary duty. Berg & Berg Enterprises LLC v. Boyle, --- Cal. App. 4th ---, 2009 WL 3470631, 09 Cal. Daily Op. Serv. 13, 305 (Oct. 29, 2009).

California has now joined Delaware in holding that directors do not owe creditors a fiduciary duty, even when the corporation is operating in the so-called “zone...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.