Publisher's Synopsis
The insolvency legislation of 1985 and 1986 introduced a new code of conduct for company directors. It sets standards of competence, diligence and skill which are far more demanding than under previous law. Breaches may lead to disqualification orders, which prohibit the director from holding any office in a company of taking part in its management for up to 15 years, and to compensation orders which impose on him personal liability to contribute to an insolvent company's assets.;It is clear that the government has made vigorous use of the wider powers to seek disqualification orders: the number of directors disqualified is now running at an average of about 300 per year. Also, as a result of the many reported judicial decisions, a clearer picture is emerging of the scope of some of the some new legal concepts, such as "unfit" conduct by a director (which can lead to a disqualification order) and "wrongful trading" (which can render a director personally liable). The Court of Appeal has also made important pronouncements on many procedural aspects of the new regime, in situations where the legislation itself is silent.;This fourth edition brings the text fully up to date and takes account of all the reported cases decided under the new legislation.
