RT Journal Article
SR Electronic
T1 The Zone of Insolvency
JF Turnaround Management
FD Institutional Investor Journals
SP 111
OP 114
VO 2002
IS 1
A1 William A.. Brandt, Jr
YR 2002
UL http://guides.pm-research.com/content/2002/1/111.abstract
AB You're a director or officer of a company that suddenly seems headed for insolvency. “Cut and run” is your first reaction. Who wants to preside over a disaster? “Get out now before I get blamed and get sued,” you think. That would be a terrible move. Recall from your teenage years that the one who left the party first was always the one who got blamed for whatever went wrong. Once you're committed to staying, have the company increase liability insurance, get other deep pockets available for potential plaintiffs, and don't worry too much about your exposure for your actions after the company is in bankruptcy court.