Director's Duties and Responsibilities
Every director has statutory duties under the Companies Act 2006 which require him or her to observe a number of general duties; for example a director should always act to promote the interests of the company and its shareholders and avoid personal conflicts of interest.
However, when a company becomes insolvent a director has an additional duty and his main focus should now be on the protection of the interests of creditors. In such a situation we will advise a director on his responsibilities and warn of the potential personal liability of failing to discharge his duty to creditors.
We will also proactively recommend ways for the director to avoid personal liability. Whilst the law does give some leeway to a director who acts honestly in his efforts to rescue or restructure a business it is always best to take and follow professional legal advice.
More from the Downs Blog
The Department for Business, Energy & Industrial Strategy undertook a report into domestic abuse and the workplace. The report identified that the number of domestic abuse cases had increased during the pandemic and that 1 in 5 victims of domestic abuse had time off work. Sadly, research found that few employers were able to identify the signs of domestic abuse and/or had policies or procedures available to help support survivors.
As the UK eagerly tuned in to the most anticipated Budget for a generation, many were left wondering what the Chancellor’s traditional “rabbit out of a hat” might contain - especially as several big measures had been announced beforehand.
The WHO defines good mental health as: “a state of wellbeing in which every individual realises his or her own potential, can cope with the normal stress of life, can work productively and fruitfully and is able to make a contribution to his or her community.”
Under new government guidance, you should work from home if you can effectively do so. However, some employers may ask their employees to return to work whilst restrictions are in place - particularly if it is not reasonable to carry out that work at home. For those who are concerned about health problems, or juggling childcare, where do you stand in the eyes of the law?
The third lockdown in England legally came into force on 6 January 2021. How long it will last is uncertain. At least until mid-February and possibly until late March. Vaccination provides a route out of the pandemic, but businesses need to survive this final and possibly longest of the lockdowns.
During these uncertain times, it is good to know you can count on us.
Even after the recent Government announcement of another national lockdown we remain open for business and are here to help you.
On Thursday 5 November 2020, the Chancellor announced that the furlough scheme is to be extended until the end of March 2021. During this period you will be able to claim up to 80% of an Employees salary up to a cap of £2500.
The Chancellor announced over the weekend that the Coronavirus Job Retention Scheme (CJRS) that was due to end on 31st October will be extended until 2nd December. The level of support available under the extended scheme will mirror that of what was available under the CJRS in August, with the Government paying 80% of wages up to a cap of £2,500.
The Chancellor announced on Thursday 22 October that the Government contribution to employers’ wage costs under the Job Support Scheme (JSS) will be increased. Employers will be expected to pay 5% of the cost of unworked hours instead of the 33% originally announced.
Back in the summer the Chancellor announced that employers could receive a one-off payment of £1,000 for every employee who had previously been furloughed under the Coronavirus Job Retention Scheme provided they remained continuously employed to the end of January 2021. Businesses will be able to claim the Job Retention Bonus from 15 February 2021 and the Government has stated that further guidance will be provided by the end of January 2021.
What is a family investment company (FIC)?
FICs are companies limited by shares (an “Ltd” or “Limited”) often setup by parents or grandparents (“Founders”) to benefit both themselves and their family as shareholders. Their popularity has increased in recent years, being seen as a corporate alternative to the more common discretionary trust.
With new government guidance on Covid coming into force today and the current furlough scheme coming to an end next month, as expected, the Chancellor has today announced a new scheme to help businesses.
You must meet certain day-to-day responsibilities if your business is covered by the Money Laundering Regulations or if you just want to protect your business from such risks and work on a best practice basis. These include carrying out ‘customer due diligence’ measures to check that your customers are who they say they are.
We've woken up to the news this morning that, following a public vote in a general election, the Conservative party will be forming a government after winning the biggest majority vote in over 30 years.