The Zone of Insolvency: When Has a Company Entered Into It, and Once There, What Are the Board's Duties?

This paper, authored by Kirkland partners James H.M. Sprayregen, Theodore L. Freedman and Shirley S. Cho, examines the two fundamental questions of (1) when has a company entered into to "zone of insolvency," and (2) once in the "zone of insolvency," what are the director's duties and to whom are they owed?