Directors’ Duties in the Zone of Insolvency (Sequana)
BTI 2014 LLC v Sequana SA [2022] UKSC 25 reshaped directors’ duties in the zone of insolvency. The Supreme Court confirmed the common law creditor duty as a modification of s.172 Companies Act 2006 and clarified the trigger: the company must be insolvent, bordering on insolvency, or facing probable insolvent liquidation or administration. Our specialist insolvency solicitors advise directors on Sequana compliance, personal-liability exposure, and defending record BHS-style claims for wrongful trading and misfeasance. This article explains the ruling, the sliding scale of creditor-shareholder interests, and the practical steps directors should take now.