Corporate Governance in the Context of Insolvent Companies

Abstract

<p>Corporate governance has been for many years an important aspect of company law attracting much academic interest. The extensive literature on corporate governance has not often dealt with insolvent companies. Yet governance remains critical for both financially distressed companies which have not yet entered into formal insolvency proceedings and insolvent companies which are subject to formal insolvency proceedings. This article looks at particular aspects of governance involving the board of directors in the former scenario and insolvency office-holders in the latter. It surveys the law and practice relating to distressed or insolvent companies, from the time before actual insolvency through to the time of insolvency proceedings. This is done through a review of Keay, Walton and Curl's Corporate Governance and Insolvency: Accountability and Transparency.</p>