Page 15 - BOSS Today Issue 48

THOUGHT LEADERSHIP BOSS Today #48

landlord, if you have one. They are more of companies will need to make rapid
likely to agree to payment holidays or but well thought out and documented
payment reductions if they can see that decisions as the crisis develops.
you are making good decisions for the
long-term. For further information on the duties of
n Keep up-to-date and explore the company directors, please contact
help being offered by Government Nicola Langley, Head of Legal, at
initiatives. The Job Retention Scheme, nicola.langley@bpif.org.uk
Loan Guarantee Scheme, Business
Rates holidays and grants are available.
n Consider taking advice. If the company
is receiving threats of legal action or
statutory demands, you may need
specialist legal advice or help from a
turnaround expert.
n Keep in touch with your trade
association – BOSS have produced
a wealth of detailed guidance and a
dedicated helpline for you.

Don’t:
n Rush to cancel orders. Contracts need
to be considered carefully to check for
penalty clauses.
n Sell off assets at a knockdown price to
gain ready cash without considering
the consequences. You may be
inadvertently breaching covenants with
your bank, and if insolvency should
follow, such transactions can be set
aside if they are held to be “transfers at
an undervalue”.
n Be tempted to transfer assets out of
the business to connected companies or
persons. A liquidator will look carefully
as such transactions and has the power
to overturn them.
n Prematurely pay out dividends or
bonuses, especially if the business
forecast looks weak.
n Worry too much – if you can show
that you have recognised your duties
and made reasoned and documented
decisions the courts are unlikely to seek
to hold you personally liable.

The COVID-19 pandemic is having a
devastating effect on the UK economy,
and businesses are facing tough decisions
in unprecedented circumstances. Boards

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