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LATEST NEWS & EVENTS Directors' duties "intensify" when a firm faces insolvency  When companies are facing insolvency, directors' duties "intensify", it has been claimed. According to Aviva, the ongoing rise in failing businesses is putting such people "in the firing line". It pointed to Insolvency Service figures indicating that there were 4,941 compulsory liquidations and creditors' voluntary liquidations during the first quarter of this year. This was a rise of 7.1 per cent on the previous three-month period. Robin Farquhar, head of specialist lines for Aviva, stated: "When a firm faces insolvency, a director's duty to creditors intensifies. In all types of winding-up, the official receivers can examine the conduct of a firm's past and present directors and officers." He added that a claim is often brought against directors for either a breach of their duties or for fraudulent or wrongful trading. Such allegations can be costly, Mr Farquhar said. Describing itself as the world's fifth-largest insurance group, Aviva is a financial services provider that employs a total of around 54,000 people in 28 countries. Rick Munro, head of corporate recovery and insolvency at Lamport Bassitt, said: "What directors often forget is that their obligations and duties change when a company faces insolvency from being owed to the company and its shareholders to being owed to the creditors. "The important thing for a director to do in order to meet those obligations and to avoid personal liability is to take professional advice early on and follow it." 
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