The Companies Act 2014 has recently been amended, requiring for
the first time in statute that directors of companies, unable, or
likely to be unable, to pay their debts must have regard to the
interests of creditors.
As the new statutory duty is contingent upon the occurrence or
likely occurrence of certain events, particularly in the case of a
non-executive board it is crucial that management and the
executives bring these matters to the prompt attention of the board
of directors so as to make them aware of the activation of the new
duty to have regard to creditors. The importance of providing
directors with relevant and timely information concerning
activation of the duty to have regard to creditors also
contextualises the new provision on early warning tools contained
in the newly inserted section 271A of the Companies Act 2014.
