Now more than ever, as the risk of personal liability rises, independent directors must take every precaution to protect themselves. Following the enactment of the Sarbanes-Oxley Act – and with bankruptcy filings currently at a 50-year high – independent directors are becoming a target for shareholders, management, creditors and regulatory agencies as evidenced by a recent increase in litigation against them. This questionnaire focuses on actions directors should take to reduce the risk of personal liability when an organization is in financial distress.