Director's Duty Of Filing For Insolvency

The corporation governance structure has been changed greatly due to the separation of ownership and management in the modern corporation. Board is corporation's executive department. The directors, corporation's business executor, control almost all the managements when they make a business decision and manage corporation's affairs. Liabilities and responsibilities become increased while the power grows. Directors have the care duties and loyalty duties. In traditional corporation law, directors just have the responsibilities; also have the prudent and care management duties for the corporation. With the development of corporation law, directors must take the responsibilities for the third parties based on"the theory of corporation's society liabilities". Especially, when the corporation has the insolvency cause or corporation's financial condition is"in the vicinity of insolvency","in the zone of insolvency", or"unreasonable small capital", the directors have the...