For several years, bankruptcy and corporate governance scholars have discussed “control rights” in bankruptcy cases and have debated how those rights should be allocated. Data indicate that, as a positive matter, creditors effectively have the ability to decide the fate of an insolvent firm. The scholarship does not, however, adequately address which ethical duties should be imposed on the people who exercise those control rights. This Article fills that void by documenting the increased presence and influence of creditor-controlled managers who have the powers, but not the ethical duties, of public trustees. The Article argues that a firm’s principal creditors or investors should not be allowed to shift control of the firm to managers hired at their request unless those privatized trustees are forced to comply with the same ethical obligations that the Bankruptcy Code and applicable state laws impose on the public trustees of insolvent firms.
Volume 93 - No. 3
- Note: Copyrighted Laws: Enabling and Preserving Access to Incorporated Private Standards
- Note: Embracing Ambiguity and Adopting Propriety: Using Comparative Law To Explore Avenues for Protecting the LGBT Population Under Article 7 of the Rome Statute of the International Criminal Court
- Note: Getting Back to Basics: Recognizing and Understanding the Swing Voter on the Supreme Court of the United States
- The Value of the Standard
- The Substantially Impaired Sex: Uncovering the Gendered Nature of Disability Discrimination
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