Partners Gardner Davis and Danielle Whitley together wrote an article, “Blocking Director’s Fiduciary Duty Essential for Successful Remote Entity Structure,” which explains why, in compliance with Delaware laws, blocking directors need to serve as fiduciary for bankruptcy remote entities (BRE), rather than for the entities’ loan lenders.
Within the article, Davis and Whitley describe BREs and the processes and formalities associated with them, explain why Delaware LLC managers owe fiduciary duties, and extensively analyze specific cases having to do with BREs to explain the importance of blocking directors having these fiduciary duties.
