THE NEW DUTY TO COMPANY CREDITORS: A STATUTORY STEP TOO FAR?

A significant problem for company creditors is that the principles of legal personality and limited liability incentivise high-risk decision making and the dissipation of assets when a company enters financial difficulty. To correct for these incentives, Irish common law required directors of insolvent companies to consider the interests of creditors and to preserve company assets if it was clear that the company was to be wound up. In July 2022, Ireland amended the Companies Act 2014 to place the fiduciary duty to creditors on a statutory footing. This article analyses the reforms introduced by these amendments.