Directors’ Duty of Care in Times of Financial Distress Following the Global Epidemic Crisis

Anidjar, Leon

Publication:
Directors’ Duty of Care in Times of Financial Distress Following the Global Epidemic Crisis

dc.contributor.author	Anidjar, Leon
dc.contributor.ror	https://ror.org/02jjdwm75
dc.date.accessioned	2025-04-09T09:46:18Z
dc.date.available	2025-04-09T09:46:18Z
dc.date.issued	2020-12-31
dc.description.abstract	The global COVID-19 pandemic is causing the large-scale end of life and severe human suffering globally. This massive public health crisis created a significant economic crisis and is reflected in a recession of global production and the collapse of confidence in the functions of markets. Corporations and boards of directors around the world are required to design specific strategies to tackle the negative consequences of the crisis. This is especially true for small and medium-sized enterprises (SMEs) that suffered tremendous economic loss, and their continued existence as ongoing concern is under considerable risk. Given these uncertain financial times, this Article is devoted to exploring directors' duty of care from a global perspective. In particular, I argue that the current crisis will underline the importance of the advisory role of the board of directors rather than the monitoring function, and further regulatory reforms that strengthen such capacity are expected to emerge. Furthermore, I maintain that the civil law rather than the Anglo-American law on directors' duty of care provides boards with a more expansive scope of discretion to confront the unusual challenges associated with COVID-19 because these governance regimes are tailored to the unique features of companies and markets. I apply this novel argument to different types pf SMEs, mainly family business firms and venture capital-backed firms.
dc.description.peerreviewed	yes
dc.description.status	Published
dc.format	application/pdf
dc.identifier.citation	Anidjar, L. Y. (2020). Directors' Duty of Care in Times of Financial Distress following the Global Pandemic Crisis. Brook. J. Int'l L., 46, 99.
dc.identifier.issn	0740-4824
dc.identifier.uri	https://hdl.handle.net/20.500.14417/3741
dc.issue.number	1
dc.journal.title	Brooklyn Journal of International Law
dc.language.iso	en
dc.page.total	51
dc.publisher	Brooklyn Law School
dc.relation.department	Private & Business Law
dc.relation.entity	IE University
dc.relation.school	IE Law School
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRights	info:eu-repo/semantics/openAccess
dc.rights.uri	https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.title	Directors’ Duty of Care in Times of Financial Distress Following the Global Epidemic Crisis
dc.type	info:eu-repo/semantics/article
dc.version.type	info:eu-repo/semantics/publishedVersion
dc.volume.number	46
dspace.entity.type	Publication
relation.isAuthorOfPublication	7cd34195-695c-439e-b19e-e8da23d0736e
relation.isAuthorOfPublication.latestForDiscovery	7cd34195-695c-439e-b19e-e8da23d0736e