Directors' duties: Supreme Court confirms and clarifies ‘creditor duty’

In BTI 2014 LLC v Sequana SA and others [2022] UKSC 25, the Supreme Court has confirmed that directors have a fiduciary duty to consider the interests of the company's creditors when the company becomes insolvent or is approaching insolvency. 

Although the case provides useful clarification on when this ‘creditor duty’ is triggered and what it entails, there are still aspects that remain unresolved, and directors will still face difficult decisions when trying to navigate periods of financial turbulence.  

Directors' statutory duties