This article is a continuance effort from our previous article
on restructuring, and an endeavor to touch upon some of the
pertinent regulatory issues. While COVID-19 poses a series of
challenges to public health followed by a likely setback to the
economy, this article keeps a focus on issues that the board and
the management of corporates are likely to come across against the
backdrop of COVID-19. We hope this article based on pertinent
regulatory issues can guide corporates on facing this situation
appropriately.
Directors' Duties
It is settled law that directors owe fiduciary duties towards
company and members. They act as a trustee or custodian of
stakeholders. Directors' duties all along have been evolved
under common law, but for the first time, the Companies Act, 2013,
laid down codified duties of directors (see: s.166). The
directors' duties inter alia lay down that "a director of
a company shall act in good faith in order to promote the objects
of the
