Should directors of companies owe fiduciary duties to third parties?

Abstract

Abstract provided by author

This dissertation discusses the principle of Directors' fiduciary duties and the protection of creditors of companies. In this endeavor, the paper will seek to establish whether there is a need to extend directors' fiduciary duty to creditors in order to protect the creditors' interests. In other words, the paper seek to ascertain whether contractual remedies in place so far guarantee adequate protection to the interest of creditors especially when the company is still a going concern

Firstly, the paper discusses the justification and general review for the topic chosen. Secondly the discussion of the concept fiduciary duty is explored in its entirety and what it entails. Thirdly, and perhaps the most important, the paper discusses the creditors' interests and directors' obligations to protect such interests. Under this sub-heading reference is made to loans and debentures

In chapter five, author made a comparison between states in various jurisdictions inter alia South Africa, England and New Zealand just to mention but a few. Alternative means of protection apart from statutory or contractual remedies are also discussed. Finally chapter seven of this paper is comprised of recommendations and conclusion in which the author proposed possible recommendations to supplement already existing remedies to ensure proper and adequate protection for creditors' interests.