Business Recovery Factsheet - Flipbook - Page 6
Practical Steps for Directors/contd
the directors should consider seeking appropriate professional advice (from lawyers, accountants, and/or
insolvency practitioners). It is recommended that a proper record is kept of who the directors have
consulted and when.
all transactions should be carefully considered in the context of the company’s solvency position and the
reasons for entering into or not entering into a transaction should be fully recorded.
in the context of a group of companies, consider the intra group arrangements in place, in particular any
existing cash pooling arrangements and whether they should be continued given how it operates and the
impact on each company in the group. Be aware of the possibility of conflicts of interest where a director
sits on the board of more than one company.
engage with the company’s funders and key suppliers, and keep them informed of the company’s
financial position and circumstances as appropriate.
seek to form partnerships with your key suppliers that will enable the company and its suppliers to trade
through the current situation. By way of an example, in the context of a fixed term contract for the
provision of cleaning services to sites which are temporarily closed, the supplier may agree to its
customer paying the supplier’s fixed overheads but not its employee costs for the duration of the site
ensure that you can explain the rationale for the company’s continued trading with reference to the
position of the company’s creditors.