If a company decides to furlough some or all its directors, this must be
formally recorded as a decision of the company.
These board minutes record such a decision and refer to the COVID 19
pandemic and the company’s desire to make use of the Coronavirus Job
Retention Scheme. The board then considers the directors that it wishes to
furlough and the draft form of letter that must be sent to each relevant
director. Note that as directors have Companies Act 2006 duties that they
must still fulfil, this template therefore makes reference to the “part”
furlough that directors, unlike other types of employees, must continue to
reasonably carry out whilst ceasing all other forms of commercial
activities for the company.
This template has been updated to reflect the extension of the Scheme in its current form until 31st July 2020. In addition, employers will be able to bring back furloughed employees on a part time basis from 1st July 2020. The Government will provide more details in relation to this. The Scheme will end in its entirety on 31st October 2020.
This document is duplicated in the
Directors’ Service Contracts
subfolder, which is in the Corporate Folder. There are also information
pages regarding
coronavirus and private limited companies
.
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