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University Degree: Insolvency Law

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  1. Does the laws concerning directors of insolvent companies strike the right balance of protecting between protecting the public and encouraging entrepreneurship

    where at some time before the commencement of the winding up of the company, they knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation.3 Courts are not to make an order against directors if satisfied that after the directors first knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation, they took every step with a view to minimising the potential loss to the company's creditors as they ought to have taken.4 The section was designed to

    • Word count: 1818

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