Corporate
Nov. 24, 2009
Duty to Corporate Creditors Now Limited
Tamir Damari and John Hansen of Nossaman explain how a director's fiduciary duty to an insolvent corporation's creditor is now limited.
By Tamir Damari and John Hansen
Recently, in Berg & Berg Enterprises, LLC v. Boyle, 2009 Cal. App. LEXIS 1740 (Oct. 29, 2009), the California 6th District Court of Appeal defined the circumstances under which a director/officer of an insolvent corporation owes fiduciary duties to the corporation's creditors. The court determined that a corporate creditor can sustain a breach of fiduciary duty claim against a corporate director/officer only if: the acts underlyi...For only $95 a month (the price of 2 article purchases)
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