COVID-19: Board Business: Directors' duties, practical mitigation steps and assessment of financing arrangements
COVID-19: Board Business: Directors’ duties, practical mitigation steps and assessment of financing arrangements
The outbreak of COVID-19 continues to have a deep impact on businesses across all sectors. A growing number of companies are warning that they will fail to meet financial and commercial targets and global supply chains are being disrupted. The legal implications of this are far ranging, complex and evolving.
In the latest edition of our series "Responding to COVID-19 - Board Business", we take a look at directors' duties in the context of the current uncertain environment. In particular, we explore the position of directors of companies with solvency issues and the steps that should be taken by a board in order to best mitigate any solvency risks. Many companies are also considering how the pandemic will affect their existing and future financing arrangements. We identify some of the areas where financing and related agreements may be affected and look at some questions which should be considered at board level.
If you have any questions in relation to the matters raised, or if there are any other issues relating to the impact of COVID-19 which you would like to see dealt with in future editions, please contact any member of Corporate and M&A team.