Impact of Coronavirus on Directors' Duties
Effects of Coronavirus on Directors
The Companies Act 2006 statutory duties, fiduciary duties, remain unchanged and directors must
continue to have regard to these when making decisions and considering the
best course of action to take as far as navigating the company through the
pandemic. This includes potential conflict issues and following the correct
approvals procedures. The company must above all act in the best interests
of the company to promote the success of the company for the benefit of its
shareholders.
Given the uncertainties created by the pandemic, and the decisions faced and made by directors in balancing short-term needs against the long-term success of the business, the risks to the directors in carrying out their duties may have escalated. To mitigate such risk, directors should ensure they act in good faith in a prudent and reasonable manner based on current information at the time of the decision(s), and record the interests and factors taken into consideration.
Please click on the links below for further information:
Corporate
Buy
e.g. Shareholder & Partnership Agreements, Board Minutes and more.
Only £35.00 + VAT!