DUTIES OF DIRECTORS OF COMMERCIAL COMPANIES FACING THE LIKELIHOOD OF INSOLVENCY

Djuro Djuric; Vladimir M. Jovanović; Stevo Škrbić

doi:10.51738/kpolisa.2026.1r.djdjvjss

Authors

Djuro Djuric Union Nikola Tesla University, Belgrade Faculty of Business Studies and Law https://orcid.org/0000-0002-8101-5508
Vladimir M. Jovanović University of Business Academy, Novi Sad Faculty of Law for Commerce and Judiciary https://orcid.org/0000-0003-1741-9062
Stevo Škrbić Union Nikola Tesla University, Belgrade Faculty of Business Studies and Law https://orcid.org/0009-0001-9094-7593

DOI:

https://doi.org/10.51738/kpolisa.2026.1r.djdjvjss

Keywords:

directors’ duties, commercial company, corporate governance, likelihood of insolvency, EU

Abstract

Following the adoption of EU Directive No. 1023/2019 on preventive restructuring frameworks and its implementation into the national legislation of EU Member States, as we l as beyond the EU, specific statutory duties have been introduced for directors of commercial companies facing the likelihood of insolvency. In the course of regular business operations, directors owe specific duties to the company and its shareholders. Until recently, special duties towards the company’s creditors arose only upon the occurrence of a ground for insolvency. The moment at which such special duties towards creditors arise has now been shifted to the pre-insolvency stage, thereby expanding the scope of responsibilities inherent in responsible corporate governance. In such circumstances, directors of a debtor company primarily owe particular consideration to the interests of creditors, shareholders, and other stakeholders. Furthermore, they are obliged to take appropriate steps to prevent the insolvency of the company. Fina ly, they must refrain from actions or omissions that, either intentionally or through gross negligence, jeopardize the sustainability of the company’s business operations. These duties represent the minimum standard established by the provisions of the Directive, a lowing Member States to introduce a broader range of obligations. however, the Directive does not define what constitutes the likelihood of insolvency, nor does it specify the content of the duty of care. Moreover, it fails to clarify which other stakeholders are encompassed by this duty of care. This gives rise to numerous questions, such as the precise moment at which special duties of care arise, the substance of such duties and their potential breach, and the identification of the persons who are beneficiaries of these duties. The aim of this paper is to analyse the newly introduced special duties of directors, the manner and scope of their implementation into national legal systems, and the practical consequences of their application. The research is based on the normative method, complemented by a comparative legal analysis of the implementation of the Directive’s provisions, while case studies provide insight into practical application.

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