Companies Act 2014 section 224A

Directors to have regard to certain matters where company is, or is likely to be, unable to pay its debts

Section 224A sets out the duties that directors must observe when they know, or have reasonable cause to believe, that the company is, or is likely to become, unable to pay its debts.

• Where a director believes or has reasonable cause to believe the company cannot pay its debts, they must have regard to the interests of creditors
• Directors must take steps to avoid insolvency wherever possible
• Directors must avoid deliberate or grossly negligent conduct that threatens the viability of the company's business
• These duties are owed to the company alone and are enforceable in the same way as any other fiduciary duty owed by directors to the company