When will the provisions relating to directors duties come into force?
There are two key commencement dates for directors’ duties: • 1 October 2007 for provisions relating to directors’ duties (except for conflicts of interest); and • 1 October 2008 for the director conflict of interest provisions. Practical tips When defending a wrongful trading claim it is important to be able to show that steps were in fact taken so directors should ensure that meetings are minuted and any appropriate professional advice should be evidenced in writing. Directors should bear this in mind when considering the nature and extent of their duties as directors if their company is nearing insolvency. Once this point is reached they should ensure that full and complete minutes and board papers are maintained even if laxer standards might have applied in less difficult times. What to do next? The Act introduces a new duty to promote the success of the company. This duty is displaced when a company in insolvent and, at this stage, we predict that the substance of directors’ dutie
