A corporate board that fails to take appropriate actions while the company moves toward the zone of insolvency and potential bankruptcy risks making harmful decisions that could impact recoveries to shareholders and creditors, and possibly expose the board to potential claims. This article discusses the actions that the board of a financially distressed entity should consider as its company begins to face impending financial challenges in order to manage a restructuring process effectively, maximize value for all constituents and mitigate potential claims that may arise from the zone of insolvency.