Introduction and purpose of part four

• Author: United Nations Commission on International Trade Law
• Pages: 1-1

1

Legislative Guide

on Insolvency Law

Part four: Directors’ obligations

in the period approaching insolvency

(including in enterprise groups)

Second edition

Introduction and purpose of part four

e purpose of part four is to identify basic principles to be reected in the law

concerning directors’ obligations in the period approaching insolvency. In the

present second edition, an additional section has been included to address the

enterprise group insolvency context. Section one addresses the key elements of

directors’ obligations in the period approaching insolvency. It does so in the con-

text of an individual company when that company faces imminent insolvency, or

its insolvency becomes unavoidable. Building on section one, section two addresses

how some of the recommendations contained in section one could be revised for

application to directors in the enterprise group insolvency context. It identies

the extent to which a director of an enterprise group member may take account

of considerations beyond the enterprise group member he or she manages in the

period approaching insolvency and the safeguards that should apply. It also includes

additional recommendations to address situations when a director faces a conict

in discharging the obligations owed to the dierent enterprise group members.