Independent directors are charged with protecting the interests of the organization and its shareholders by providing appropriate oversight and making objective decisions. When the organization is in financial distress, a whole new set of issues arise; experienced independent directors can provide a fresh unbiased perspective on corporate issues.
In circumstances involving matters of insolvency or potential insolvency, independent directors should be mindful of the issues involved. In this issue of Board Perspectives: Risk Oversight, we focus on personal liability risks and responsibilities for independent directors in times of financial distress.