25 November 2020
Business judgement in unprecedented times
Directors owe a duty to act in the best interests of the company in respect of which they have been appointed. Meeting this duty requires, amongst other things, taking into account changes to the business environment and the challenges presented by those changes.
COVID-19 has created significant uncertainty and economic disruption, with far reaching impacts in the way businesses are conducted. Boards have had to quickly reconsider their forecasts, plans and business decisions. Faced with increasing financial pressures and uncertainty, determining what is in the company’s best interests is currently a challenge fraught with risk.
In this webinar we will discuss:
how directors can best carry out their duties and minimise their personal exposure to liability in the current environment
whether there are any limits to what directors can take into account in deciding what is in the best interests of the company
what systems and processes should directors put in place, if any, to ensure they are making the right decisions at the right time
the application (and limitations) of the business judgement rule in current times
what lessons can be learnt from the current challenges.