Saving Failed Biz Insiders From Fiduciary Duty Claims

Law360, New York (April 12, 2011, 1:20 PM EDT) -- Bankruptcy trustees for debtor corporations often seek to recover funds for the creditors from the company’s former directors and officers and their insurance carriers. In addition to the traditional tool-kit of causes of action under bankruptcy law — e.g., actions for voidable preferences, fraudulent conveyances — trustees are increasingly looking to state-law breach of fiduciary duty claims.

Faced with such claims, directors have defended with a variety of arguments. Two arguments, in particular, have been successfully raised in recent litigation to prevent trustees from maintaining fiduciary...
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.