UK company directors' duties under threat of insolvency during the Covid-19 outbreak
The profound business and market interruption already caused by the Covid-19 outbreak has introduced insolvency risks for many otherwise healthy businesses.
This guide summarises the key concerns for boards facing those risks - either directly, or within their customer and supplier networks.
We look at questions such as:
- Why is it important to know when a company is (or might be) insolvent and what should the board do next?
- How can directors ensure that they are acting in accordance with their duties?
- Can a company continue to trade if it is (or may be) insolvent?
- Does the suspension of the wrongful trading laws mean that directors can allow companies to continue to trade during the Covid-19 outbreak without any risk of personal liability or criticism?
- Do directors of companies providing ‘Essential Services’ for responding to the Covid-19 outbreak have new or different legal duties?
- Should all directors be taking advantage of any new funding being made available in response to Covid-19?
- The Government has ordered my business to close – what next?
For the latest legal insight into these issues and more, plus some practical advice on what to do now, please download our guide.
If you'd like to discuss any of these matters, please contact a member of the team.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at March 2020. Specific advice should be sought for specific cases. For more information see our terms & conditions.