The world is facing unprecedented impacts from COVID-19. The impact to people, businesses and supply chains is unfolding, with challenges in almost every location on the globe.
The human impact and limiting the spread of the virus are the immediate priorities, however the impact on businesses and supply chains may take many months to unfold.
Our team is working around the world to assist businesses with a number of risk management measures.
Following is a check-list of points to keep under review:
- Review the company's business continuity plan, or create one. Your industry body may well have published industry-specific guidance.
- Establish clear communications with your lenders, your customers and suppliers, and your workforce regarding COVID-19.
- Review force majeure clauses in major contracts, check your rights and comply with procedural requirements to claim those rights.
- Pay attention to temporary relaxation of rules and relief measures to claim your entitlements, where relevant.
- Review whether any changes are needed to HR policies and contracts of employment.
- Review cybersecurity and confidentiality in relation to remote working arrangements. Remote workers are being targeted by phishing scammers.
- Bearing in mind quarantine restrictions which may apply, check exactly which of your directors, employees and shareholders are able to attend meetings and ensure that they can fulfil any respective meeting's quorum requirement.
- Check if your articles of association allow directors to hold board meetings or pass written resolutions electronically to make timely decisions when a work-from-home arrangement is in place.
- Liaise with the company's auditors to keep under review reporting requirements having regard to COVID-19 and to understand the effect on year-end accounts.
- Directors should exercise their duty of care and skills by investigating red flags concerning the solvency of the company.
- If you don't already, you may wish to review the use of electronic communications with shareholders.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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