Directors' Duties Through Difficult Times

These are extremely difficult times to be running a business.  We are still in the midst of a pandemic, the costs of importing goods are rising, the cost of energy is exponentially increasing and many lifelines or support mechanisms provided during the height of the pandemic have been taken away.  It is fair to say that some businesses are feeling the strain.

But what if the strain becomes too much?  Directors need to understand their duties and responsibilities when a company is in distress (or even before).

What duties do directors have?

As a rule, a director's duty is owed to the company and its shareholders.  The Companies Act 2006 has codified the main ‘general' duties of any director, namely to: