Voluntary Agreement With Creditors

Directors have a legal obligation to act properly and responsibly and to put the interests of their creditors first. The risks associated with the liquidation of a company may include the exclusion from the activity of director of other companies as well as the personal reputation of director. In extreme cases, managers may be held personally liable for contributing to creditors` defaults. However, since a voluntary agreement by the company is in the best interest of creditors, there is no investigation into the director`s conduct. . . .