Director's Duties And Responsibilities To Creditors When The Company Is On The Brink Of Bankruptcy

Under tradition company law, directors shall only responsible for the company, and assume the obligation of prudent attention to shareholders. In 1980s, under the historical background that public demand managers care stakeholders'interests, some main countries in common law system set up a series of precedent, which demand directors consider the benefit of creditors of the company in some situations. This rule not only increased the duty of directors, but also provided a powerful weapon for the creditors, assignees in insolvency that represent creditors, and trustees in bankruptcy when they protect creditors'benefit. And the establishment of"social responsibility theory"requires directors undertake management duty to stakeholders other than shareholders. Especially when the cause of bankruptcy emerge, or the finance standing is"on the edge of insolvency","immerse into bankrupt"and"have assets unreasonable reduced"which means on the verge of bankrupt, directors should apply for bankruptcy petition and directly responsible for the creditors.In the process of writing this essay, the writer would rather go without than have something shoddy and refer to large amount of Chinese and foreign articles to research the duty and obligation of directors to creditors when the company is on the verge of bankrupt. The whole essay consists five parts: summarization of directors'duty to creditors, the content and time that directors assume this duty, the prerequisite of directors to apply for the bankrupt petition, the way directors shoulder civil responsibility, and the responsibility and contest content of directors when they break the obligation to apply for bankrupt petition.