When a public company runs into financial difficulties, it’s not just management on the hot seat: the company’s directors also come under fire—facing tough scrutiny from the company’s
creditors, stockholders, and employees, just to name a few. And no matter how well the directors have performed in the past, once their company enters bankruptcy, there is the possibility of
extensive litigation and lawsuits where every decision of the directors will be scrutinized and second-guessed.
How can directors recognize when their company is headed towards trouble? What can they do to try to turn things around before it is too late? What new duties must directors satisfy once their company becomes insolvent?
PricewaterhouseCoopers Corporate Advisory and Restructuring LLC (PwC CAR) brought together experts in corporate restructuring to discuss these issues in an October 2006 roundtable. The moderator was Peter Spratt, president of PwC CAR and the global leader of crisis management.
Reprinted from Directors Monthly with permission of the publisher: National Association of Corporate Directors (NACD)
Publications Search Page
