Davis Quoted on Director Liability in Fraudulent Conveyance

Foley Partner Gardner Davis discussed director liability in fraudulent conveyance. He explains that the basic rule of corporate law is that creditors are paid before shareholders, adding that directors may face corporate statutes for declaring dividends or repurchasing stock when the company is insolvent. Davis notes that avoiding fraudulent conveyance can be challenging for directors because insolvency is often judged after the fact.