The Zone of Safety: How to Be an Active and Confident Director During Financial Distress
Author: Andrew G. Dietderich.
Source: Volume 39, Number 01, January 2023 , pp.1-6(6)
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Abstract:
In this article the author lays out 11 points for directors in restructuring corporations to consider. If adopted, these can establish boundary lines for what the author calls a “zone of safety” in which directors can be active and engaged for the benefit of the corporation and its stakeholders without fear of liability.Keywords: Zone of Safety v. Zone of Insolvency; In re Caremark Int’l Inc. Deriv. Litig; Best Practices for Corporate Directors During a Restructuring
Affiliations:
1: Sullivan & Cromwell LLP.