Directors’ Duties in Insolvency Litigation

When a company begins to experience financial difficulty, directors must continue making critical decisions while balancing commercial pressures with their legal responsibilities. In practice, disputes often arise after insolvency when courts are required to determine whether directors acted appropriately during the period leading up to the company's failure.

This webinar examines how courts in New Zealand and Australia assess directors' duties in insolvency litigation. Drawing on extensive experience in commercial and insolvency law, the session explores how director conduct is evaluated, how timing influences liability, and how decision-making is scrutinized in financially distressed companies. Participants will gain practical insight into the legal principles governing directors' duties and the factors that shape insolvency-related claims and litigation outcomes.

Key Topics Discussed:

• Directors' duties under New Zealand and Australian company law
• Financial distress and changing legal obligations
• Recognising indicators of insolvency
• Judicial assessment of directors' conduct
• Timing and liability in insolvency litigation
• Insolvent trading and reckless trading principles
• Liquidator and creditor claims against directors
• Evidentiary issues in breach of duty claims
• Common director defences
• Commercial context and judicial decision-making