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Non-execs must open their eyes to insolvency risks

This article by Brent Haywood, Partner and Solicitor Advocate in our Dispute Resolution and Litigation team, appeared in the Friends of The Scotsman on Monday 11 March.

Non-executive directors are increasingly finding themselves on the receiving end of insolvency litigation. It’s therefore essential they understand the duties and liabilities they’re taking on when they join a board. Too often they don’t.

There are many reasons to become a non-executive director (or NED). It’s good for the CV, interesting work, a way to support other entrepreneurs, and a useful stepping stone if you’ve given up a full-time day job but aren’t ready for a life of year-round leisure.

It’s also flattering to be asked. And if you hesitate, you may well receive assurances that it’s not much work – just four board meetings a year and they keep the paperwork minimal. If you do hear this, be wary.

View entire article here.

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