In an article published in The Review of Banking & Financial Services, Andy Dietderich maintains that the conventional advice for corporate directors about their fiduciary duties when their companies are in financial distress is out-of-date. Given recent changes in Delaware law and market conventions, Andy recommends that directors remain actively involved in the oversight of a corporation during a restructuring, rather than yielding control to creditors, as restructuring lawyers traditionally advise. Andy offers eleven points for directors and their corporate governance advisers to consider during restructurings, especially when facing challenging transactions, aggressive stakeholders or potential conflicts of interest.
Read “The Zone of Safety: How To Be an Active and Confident Director During Financial Distress.”
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