Business Impact
Directors' Duties in relation to employees
It is worth remembering that whilst directors owe their duties
to the company, and not employees, the Companies Act 2006 requires
that a director act in the way he or she considers, in good faith,
would be most likely to promote the success of the company for the
benefit of its members as a whole and, in so doing, the director
must have regard (among other matters) to the interests of the
company's employees. Therefore, were directors to (for example)
be reckless as to the impact of Covid-19, there is a risk of
liability. As a practical matter, the board of a company will want
to be able to demonstrate that it has considered an appropriate
response to Covid-19 issues were they to impact on employees (for
example, what should be done if an employee chooses to visit a high
risk area?). Ensuring that points such as this and those raised
above have been considered at the appropriate level will assist
