This essay examines the duty of diligence of the controlling shareholder of a corporation in financial distress, especially during the period just before filing for court-supervised reorganization, focusing on the close connection between complying that duty and the efficiency of the reorganization process. In this respect, it must be recognized that the controlling shareholder’s own interests are at stake in the process, and in this position the controlling shareholder has alternatives to promote a speedier resolution, with savings in costs as well as time, therefore producing benefits for both the corporation and its creditors.
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Mauricio Moreira Mendonça de Menezes
Carlos Martins Neto
