BMs – decision to flexibly furlough directors

If a company decides to flexibly furlough some or all its directors, this should be formally adopted as a decision of the company. These template board minutes formally record such a decision of the company.

These board minutes refer to the COVID 19 pandemic and the company’s desire to make use of the changes to the Coronavirus Job Retention Scheme in place from 1 July 2020 in order to allow furloughed directors to return to work on reduced hours, whilst their salary is topped up by the Scheme for the hours they are not working. The new rules are known as “flexible furlough”.

The board considers the directors that it wishes to flexibly furlough and the draft form of letter that must be sent to each relevant director. Note that unlike other employees, directors have Companies Act 2006 duties that they must still fulfil even when on furlough leave. This template therefore makes reference to the need to continue to do what is reasonably necessary to fulfil these duties as directors in line with the Companies Act 2006.

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