Bar Bulletin

Bar Bulletin

Solving for Insolvency

March 2022 Bar Bulletin

By Al Davis

Suppose you have a corporate client with a board member who holds significant ownership or equity interest, including the possibility of a personal guarantee for the company’s debt. And let’s assume for the moment that not long ago, the company’s financial condition was solid, but things have taken a turn for the worse and the company is now insolvent or nearly so.

What’s the board member to do? Well, let’s begin by advising what not to do, which is to have them resign. That may be the typical knee-jerk reaction of the board member based on the assumption that by doing so, the individual will relieve themselves...

CURRENT MEMBER?

SIGN IN TO VIEW THE REST OF THIS ARTICLE

NOT A MEMBER?

King County Bar
Association

1200 5th Ave, Suite 700
Seattle, WA 98101

Main (206) 267-7100

 Contact Us