BMs – decision to flexibly furlough directors
Board Minutes to Flexibly Furlough Directors under the Coronavirus Job Retention Scheme
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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