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Record W2301842642

Directors’ Duties in Insolvency: Clarifying What’s at Stake

2003· article· en· W2301842642 on OpenAlexaffabout
Edward Iacobucci

Bibliographic record

VenueTSpace · 2003
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Insolvency and Governance
Canadian institutionsUniversity of Toronto
Fundersnot available
KeywordsInsolvencyCreditorBusinessShareholderDeferenceEnforcementLaw and economicsBankruptcyAccountingBusiness judgment ruleScrutinyLawEconomicsPolitical scienceFinanceCorporate governanceDebt
DOInot available

Abstract

fetched live from OpenAlex

This comment on the Quebec decisions in Peoples v. Wise addresses the question of whether corporate directors’ duties of care and loyalty should shift from shareholders to creditors when the firm becomes insolvent or approaches insolvency. In an ideal world of perfect enforcement, directors would optimally owe a duty to the collective interests of shareholders and creditors. But given the existence of non-legal sources of discipline on directors and officers, and the risks of judicial error, courts have adopted a highly deferential posture towards review of director decision-making, which implies relatively light judicial scrutiny of the matter which is at the heart of the tension between creditors and shareholders: the risks that directors cause the company to assume. Given this substantive deference, the question of whether duties shift from shareholders to creditors in insolvency recedes in importance. Having said that, there may be a procedural justification for shifting the duties: in insolvency, creditors become the parties with better incentives to enforce the duties. The comment concludes by raising a possibly more important question about whether the content, rather than the beneficiaries, of the directors’ duties should change in insolvency. Given that market influences on directors’ behaviour may change in insolvency, there may be an argument to change the substance of the duties in insolvency.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.892
Threshold uncertainty score0.839

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.001
Science and technology studies0.0000.000
Scholarly communication0.0000.002
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0010.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.043
GPT teacher head0.262
Teacher spread0.219 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designNot applicable
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations2
Published2003
Admission routes2
Has abstractyes

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