Crisis Situations: Guidelines For Boards Of Directors

In times of crisis, there is a shift of competencies from a company's management to its board of directors. These guidelines aim to provide boards and other decision makers with an overview of key measures, duties and various legal aspects. The following areas require particular attention in our experience:

• Duty to act: In crisis situations, the board needs to take command, intensify its supervisory control of management and implement suitable reporting systems.
• Need for a realistic analysis: Faced with the threat of a financial downturn, the board should immediately carry out a realistic analysis of the current situation. We recommend communicating with the auditor early on to address going concern and valuation factors.