The fallout from Mainzeal: what directors have to do

Directors are elected or appointed to manage a company’s business and affairs. (Image: Getty)

Wed, 27 Sep 2023

The role of directors in helping steer businesses has been in the spotlight this month, after the supreme court ordered the directors of Mainzeal to pay $39.8 million, plus interest, for letting the construction firm keep trading while insolvent and while owing $110m to unsecured creditors.It's a scenario that sends a chill down the spines of directors, who could face personal liability or bankruptcy.Company directors have many legal duties they owe their company, all the way from simply acting in good faith, to not engaging in reckless tra...

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