This last year has been very unpredictable for many UK companies. Exiting from the European Union on 31st January 2020, coinciding with the unprecedented pandemic of Covid 19, we have seen even the largest of businesses be heavily impacted ie. Boohoo’s takeover of Debenhams and more recently, the news that Thorntons chocolatiers will close all its UK shops.
With this in mind, are you fully aware of your directors’ duties towards your Company, specifically with regards to insolvency? Let’s take a look…
1. You have a Statutory Duty:
- to act within your powers;
- to promote the success of the company;
- to exercise independent judgement;
- to exercise reasonable care, skill and diligence;
- to avoid conflicts of interest;
- not to accept benefits from third parties; and
- to declare interest in a proposed transaction or arrangement.
2. Other duties a director is responsible for:
- a duty of confidentiality to the Company
- Wrongful trading
- Fraudulent trading
NOTE: The UK government introduced some temporary measures relating to wrongful trading for UK private limited companies. Please see our Corporate Insolvency and Governance Act 2020 blog here for further details on this.
You can also view our in depth blog on Directors Duties and Responsibilities here.
If you require any help or advice, please speak to our Corporate and Commercial team at on 0161 926 9969 or email email@example.com.