Board Minutes

June 2020

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 viability.

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 legal matter.

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