Directors – is there help available during this period of crisis?
During this pandemic we have seen lots of businesses going under and it is likely that many more businesses may too. However, in the most recent guidance published by the government there is some assistance available for company directors, and I would like to share this with you, as it may help during these unprecedented circumstances.
The good news is that directors can be furloughed, which I imagine is a relief for many directors. Although there is a formal process that needs to be adopted, when furloughing a director.
Whilst furloughed, a Director can still perform their statutory and fiduciary duties for instance attending board meetings, running of the company to prevent the company from trading insolvent etc. Otherwise a director could be at risk of being held liable in an event that the statutory and fiduciary duties are not met.
An important point to note is that a director, who has been furloughed, is only to carry out duties to fulfil statutory obligations that they owe to their company. A director cannot carry out work of any kind that they would carry out in normal circumstances to generate commercial revenue or provide services to or on behalf of their company.
If you have any questions about your legal position or wanted to discuss your options at this difficult time, we are here for you. To arrange a friendly chat please get in touch at firstname.lastname@example.org or 0203 887 8740.