Key Issues Facing Company Directors In Relation To COVID-19

13 April 2020 – Under the provisions of the Turkish Commercial Code, company directors are required to act diligently and prudently in the performance of their duties relating to company management. The duty of care imposed on company directors covers all aspects of company business, including the management of labour, the supply chain, customer relations, operations and finance. Directors may be liable towards company shareholders and creditors for losses arising from their negligent actions.

The COVID-19 pandemic has affected most businesses negatively: it creates unpredictability and uncertainty in managing a company and raises the question of how directors should ensure the continuity of the business while taking steps to protect the health and safety of employees. In this context, we have highlighted the following key issues that company directors in Turkey should consider and recommendations on how to address them.