If a company decides to 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 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 will
be particularly relevant for sole directors.
This template has been updated to reflect the extension of the Scheme until 31st July 2020. In addition, employers will be able to bring back furloughed employees on a part time basis from August 2020 until 31st October 2020. The Government will provide more details in relation to this.
This document is duplicated in the
Coronavirus Job Retention Scheme (Furlough Leave)
subfolder, which is in the Employment Folder. There are also information
pages regarding
coronavirus and private limited companies
.
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