The duty to creditors: nature, rationale and need

This chapter first examines the nature of, and rationale for, the duty that directors have to consider the interests of creditors. But the largest part of the chapter is concerned with a consideration of whether, given the existence of the statutory claims of fraudulent trading and wrongful trading, as well as the existence of provisions in the Insolvency Act 1986 that allow for the adjustment of preferential transfers and transactions at an undervalue, and the avoidance of transactions intended to defraud creditors, there is any need for a duty to creditors.