Against the backdrop of Brexit, the UK finds itself in a prolonged period of economic uncertainty.  It is likely that a rising number of UK companies will experience a period of financial distress.

With this shift comes a change in focus for boards of directors who may be unfamiliar with the specific challenges of distress, and this can drive varying behaviours:

• Inertia in decision making or potential “knee jerk” reactions; and
• Director nervousness about their personal responsibilities and position.

This paper explores how directors’ duties and responsibilities change in situations of distress and provides practical considerations for boards of directors either entering into or already in the zone of insolvency.