The Codification of the Directors Duty to Consider the Interests of Creditors in Irish Company Law

This piece considers the codification of the directors' duty to consider the interests of creditors in Irish company law. Although it is well-established as one of the fiduciary duties of directors, the duty to have regard to the interests of creditors when the company is insolvent or is approaching insolvency was only placed on a statutory footing in 2022 and is now provided for in Section 224A of Ireland's Companies Act, the Companies Act 2014. This piece will consider the background to the new statutory provision as well as its contents and its implications for practice. It will also consider briefly whether guidance on the operation of the newly codified duty can be drawn from recent jurisprudence of the UK Supreme Court concerning a similar directors’ duty in English law