The COVID-19 pandemic has radically changed the business landscape for
companies in ways unforeseen even a few months ago. What has not changed
however is that a director’s duties and responsibilities as set out in the
Companies Act 2006, will continue to apply notwithstanding the COVID-19
pandemic. As directors are tasked with the management and control of their
business, it is more important than ever that directors not just act in
good faith to promote the success of their company, but are seen to actively
engage with this in a proactive and transparent manner.
The current pandemic will cause directors to consider their duties and the
actions that they take even more carefully, and it is more important than
ever that this is documented. Directors are unlikely to be held to have
breached their duties if decisions made, whatever their financial outcome,
have been made to safeguard employees and ensure the company’s continued
Therefore, this month, we have produced board minutes that refer to the
COVID-19 pandemic and set out the matters that a company should consider to
successfully navigate the impact of the pandemic on the company’s business.
These board minutes allow directors to acknowledge their duties, have a
written record of their actions and the matters that they have considered in
coming to their decisions.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific