“Directors ensure proper governance of an entity” is just one of the key takeaways from the fourth installment of the BVI Finance and RISA BVI Insolvency webinar series.
The webinar centered on director’s duties in a solvent and insolvent context with presentations by Jonathan Addo, Partner (Barrister) in Litigation & Insolvency department at Harneys, Colm Edwards, Restructuring Manager at EY, Antonia McIntyre-Anderson, insolvency practitioner and chartered accountant at Grant Thornton, and Shane Quinn, Senior Associate at Agon Litigation.
Jonathan Addo, whose presentation was specific to the legislation outlining director’s duties, said a company director is “primarily a framework of fiduciary obligations designed to afford protection...to ensure proper governance of an entity”.
The role of a director is formally captured under common law, the BVI Business Companies Act, 2004 and the company’s memorandum and articles of association. According to Mr. Addo, under common law, the role of a director is mainly fiduciary and to exercise care, diligence, and skill.
In the case of a company being insolvent, Colm Edwards noted that it is difficult to determine the precise point following which directors need to take into account the interests of the company’s creditors. To that end, he said that a company should immediately seek the advice of a BVI insolvency practitioner.
Antonia McIntyre-Anderson provided a step-by-step guide for directors of companies that become insolvent. The insolvency practitioner said that directors should carefully monitor the company’s financial position on a regular basis, consider potential trigger events, ensure proper documentation of decisions, and seek professional advice at an early stage.
BVI Finance and RISA BVI is a five-part series about the jurisdiction’s insolvency practice and procedure, presented by insolvency and restructuring experts in the BVI. Contact firstname.lastname@example.org for more information about the next and final insolvency webinar in the series.
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