• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • EN | FR
Background Image
Bennett Jones Logo
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Energy Infrastructure Mining Private Equity & Investment Funds View all
Advisory
Crisis & Risk Management Public Policy
View Client Work
International Experience
Insights News Events Subscribe
Arbitration Angle Artificial Intelligence Insights Business Law Talks Podcast Class Actions: Looking Forward Class Action Quick Takes
Economic Outlook New Energy Economy Series Private Equity Briefings Quarterly Fintech Insights Quarterly M&A Insights
Sustainability & the CIO
People
Offices
About
Practices
Industries
Advisory Services
Client Work
Insights
News
Events
Careers
Law Students
Alumni
Payments
Search
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 

U.K. Decision May Influence Canadian Directors Fiduciary Duty Regarding Creditors

November 09, 2022

Preet Gill speaks with Canadian Lawyer about how even though the landmark decision of The Supreme Court of the United Kingdom in BTI2014 LLC v. Sequana SA appears to fly in the face of Canadian law, directors may still feel its impact on the exercise of their fiduciary duty as it relates to creditors.

She says, “Canadian law is very clear that there is no point at which directors can disregard the best interests of the company as a whole in favour of creditors, but BTI says this can happen when a company faces ‘imminent insolvency.’”

Preet also says that BTI may not influence a shift in Canadian law regarding the substance of directors’ duties. “The BTI court considered the Canadian jurisprudence and stated that the U.K. had gone in a different direction than Canadian law, where directors owe a duty to the corporation as a whole.”

Still, she believes that BTI’s discussion of the various stages at which the creditor's duty arises and increases in significance may be a starting point for Canadian courts struggling to determine whether directors exercised their discretion properly in the face of insolvency.

“BTI . . . provides what I call a ‘sliding scale’ for determining when directors' duties change from balancing creditors’ interests against those of other stakeholders to treating creditors’ interests as paramount. And that may prove useful if and when our courts have to decide whether directors exercised their discretion regarding creditors appropriately. There may be more sensitivity to this issue given the increasing number of insolvencies we’re seeing as a result of the pandemic and the current economic climate.”

Key Contact

  • Preet K.  Gill Preet K. Gill, Toronto Managing Partner

Related Links

  • Insights
  • Media
  • Subscribe

Related Expertise

  • Commercial Litigation
  • Corporate Governance
  • Restructuring & Insolvency

Recent Posts

Articles

Tariff Tensions: Managing Risk Through Carefully Drafted Construction Contracts

July 21, 2025
       

Speaking Engagements

Sabrina Bandali spoke at the 71 Annual Natural Resources

July 17, 2025
       

Client Work

Canada Infrastructure Bank Closes C$1 Billion Financing to Support Montréal-Trudeau Transformation

July 16, 2025
       

In The News

John Manley on the CBC News Network

July 11, 2025
       

Speaking Engagements

Rethinking Cyber Risk in the Age of AI: What Boards Need to Know

July 08, 2025
       

Announcements

Eighteen Bennett Jones Lawyers Ranked in Lexpert's Special Edition on Health Sciences

July 02, 2025
       

Client Work

Bennett Jones Acts for Canadian Pacific Kansas City Limited in Overturning C$228 Million Judgment

July 02, 2025
       

Announcements

Harinder Basra Appointed Calgary Managing Partner at Bennett Jones

July 01, 2025
       

Announcements

John Manley Appointed Companion of the Order of Canada

June 30, 2025
       
Bennett Jones Centennial Footer
Bennett Jones Centennial Footer
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2025. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones