Speaker: Dr Sofia Ellina
Chair: Dr Simge Aslan
Abstract: The purpose of this paper is to examine pre-insolvency considerations, both from a theoretical and practical perspective to illustrate how this can influence the structure, finances, and director decision-making in a company. Whether a company is in financial distress, or is in the vicinity of insolvency, directors are put on notice that all is not well with the company. Should the financial problems become serious enough, directors are expected to increasingly consider the interests of the creditors. Such a duty was confirmed in the Supreme Court decision of BTI 2014 LLC (Appellant) v Sequana SA and others [2022] UKSC 25. The nature of that duty will fall on the facts of the case, but it is crucial to note that not all issues concerning the ‘creditor duty’ were resolved. The exact moment when the ‘creditor duty’ is triggered remains a point of contention since it can be difficult to determine the exact point when a company is insolvent. Within this mire, and despite the challenges that this presents, directors are nevertheless expected to navigate these issues with deftness and in accordance with their legal duties. It is compliance with duties such as ss.172 and 174 of the Companies Act 2006, and the threat of liability through the wrongful trading provision and misfeasance under ss.214 and 212 of the Insolvency Act 1986 that help to shape the corporate form. As a final point, the implications of being found in breach and disqualified makes the Company Directors Disqualification Act 1986 a relevant consideration.
Bio: Dr Sofia Ellina joined the 糖心原创 in 2026 as an Assistant Professor. She obtained her PhD in Insolvency Law from Lancaster University in 2020 and is a qualified lawyer in Cyprus and a member of the Cyprus Bar Association. Her research focuses on Corporate Insolvency Law and Corporate Finance Law, with particular expertise in Corporate Rescue.
She is co-editor, with John Wood and John Tribe, of Directors and Creditors: Law and Liability (OUP 2026). She has presented her research at major international conferences and published in peer-reviewed journals, including the Journal of Business Law and Law and Financial Markets Review, as well as in edited volumes published by Routledge and INSOL Europe. She has also contributed to the work of the UK Insolvency Service as a Senior Research Associate.