Vol 17 (2020) - Issue 3

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Directors' Duties in a COVID-19 World

Synopsis

With a global pandemic causing unprecedented uncertainty for businesses, it has never been more difficult for the directors of UK companies fully to discharge their duties – and the risks when they do not do so have never been higher. Government schemes which seek to protect UK businesses may add to the pressure on directors to continue trading through financial difficulty, but it is essential that they appreciate what potential liability they face when doing so. Even if there were legal clarity as to the scope and content of a director’s duty in respect of creditors’ interests, discharging that duty is incredibly challenging when so much factual uncertainty exists.