"When Insolvency Looms: Knowing Where You Stand" (GC New York)

October 8, 2009
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Mr. Aquila and Mr. Naismith published an article in GC New York, "When Insolvency Looms: Knowing Where You Stand." The article discussed the role of general counsel in advising boards and management in times of financial distress. Mr. Aquila and Mr. Naismith provided several suggestions to general counsel, such as to keep current with fiduciary and other statutory duties and to have a clear understanding of a corporation's assets and liabilities. Particularly in a time of financial crisis, the authors stressed the importance of communicating the complete financial picture of the company to the directors of the corporation, in order to achieve the best outcome for the corporation and minimize the risk of personal liability for its directors.