Coronavirus - COVID-19 - Director FAQs
The COVID-19 pandemic has wreaked havoc on businesses around the world. Directors of UK companies need to be aware of what this means for them and what action they can take now.


The COVID-19 pandemic has wreaked havoc on businesses around the world. Directors of UK companies need to be aware of what this means for them and what action they can take now.
We've set out key topics for consideration. Click the links below for our practical answers to the most frequently asked questions.
Government guidance
For the latest Government guidance, refer to the following resources for:
Latest government advice on coronavirus as a whole
Details of government support available for business
Updates on how Companies House is providing services to business
Job Support Scheme: enhanced financial support for COVID-hit businesses
As a result of the lockdown restrictions due to begin on 5 November 2020, the Chancellor has announced that the Coronavirus Job Retention Scheme (furlough), which was due to end on 31 October 2020, will be extended. The Job Support Scheme, which was due to start on 1 November 2020, has been suspended and is now due to begin when the CJRS ends.
These FAQs look at the impact of a sudden precipitous drop in trading – how the resulting cash flow hit may affect the directors' duties, what they need to be concerned about, and what possible steps they can take to address this.
These FAQs look at how matters which were previously routine – signing documents, holding meetings, filing accounts, considering dividend payments – are affected now that the country is in lockdown, travel is nigh-on impossible and face-to-face contact severely curtailed.
How businesses plan and prepare for the eventual return of demand for goods and services is as important as how they deal with the current crisis. What working capital will be available to meet orders? How quickly can it redeploy its workforce and re-establish supply chains? Post-COVID-19 will the business model be transformed? Whether through traditional rescue and restructuring processes, new Government measures to support business rescue or simply taking prudent management decisions, our FAQ's will look at measures to ensure that a business can roar back to life.
Contractual relationships are in the spotlight given the disruption caused by the virus and the governmental restrictions in place. Parties are finding themselves unable or unwilling to perform. Understanding your rights and obligations is key to finding a way forward and avoiding disputes. There are some key clauses to look out for and certain legal principles that are likely to come into play.
There will be times when speaking directly to other contractual parties will be the best approach. It may be possible to agree a mutually acceptable way forward. There are some important considerations to bear in mind when negotiating postponements and other variations.
On 20 May 2020, the Government presented the Corporate Insolvency and Governance Bill (the "Bill") to Parliament. The Bill sets out the Government's proposed temporary measures in response to the COVID-19 pandemic, as well as long-planned – and permanent – reforms to insolvency and company law to facilitate the rescue of financially distressed businesses.
For advice on managing your business through the Coronavirus crisis, get in touch with our team.
Our lawyers are experts in their fields. Through commentary and analysis, we give you insights into the pressures impacting business today.
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