VIDEO: Managing your business’s funding – Directors’ responsibilities
Ward Hadaway in conversation with Begbies Traynor webinar was recorded on Tuesday 16th June.
The business spotlight is firmly on Directors. Difficult, sometimes drastic decisions need to be made in unprecedented times. But the consequences of those decisions have long shadows, and Directors need to consider their future position through the lens of their creditors, shareholders, funders, HMRC and even the courts.
In conversation with leading business rescue and recovery specialists, Begbies Traynor, we focused on the proactive approach Directors can take in these exceptionally challenging times. We discussed very practical advice about the quickest routes to funding, how to bolster cash flow, protecting the Board, and ultimately how to be proactive and in control of the process if you think there is no way back for your business as a result of the pandemic.
It is important to note that the changes to insolvency law currently before parliament only deal with wrongful trading – all other duties remain the same. So Directors must still ensure they are acting in the best interests of the company, its shareholders and creditors. In this context, the webinar discussed funding options for keeping a business solvent, and how to manage the process if this is not possible.
Ward Hadaway partner Emma Digby talked to fellow partner and insolvency specialist Jane Garvin and Kris Wigfield and Matthew Cluer from Begbies Traynor about these issues.
This webinar is the first of our Yorkshire “In conversations with…” where we explore with other experts how businesses can get on the front foot in #gettingbacktobusiness.
Related FAQs
The Construction Leadership Council (with backing from the Government) has issued practical guidance and draft pro-forma documents to enable all parties involved in the construction supply chain to enter into collaborative and open dialogue about applications for extensions of time and additional payment and to minimise potential disputes. The guidance can we downloaded here
The draft letters and notices included in the guidance have been prepared on the basis of the standard JCT Design and Build 2016 and NEC 3/4 Engineering and Construction Contract (Option A) and parties will need to make sure that they are completed/adjusted to comply with their own specific contracts.
The Cabinet Office has also issued a general statement calling on parties to contracts adversely affected by C-19 to act responsibly and fairly and to support national efforts to protect jobs and the economy.
Any hearings attended in person will need to be approved by the judge hearing the matter, if necessary, in consultation with the regional lead COP judge. Such requests are highly unlikely to be granted during COVID-19 unless there is a genuine urgency. However, it is deemed to be appropriate matters are likely to be adjourned on the basis that a remote hearing is not possible and a hearing in person is not safe or possible.
Increased hygiene measures should be introduced to limit the spread of infection. Increase the frequency of cleaning, particularly higher risk contact points such as door handles. Avoid the use and sharing of hardcopy in favour of electronic documents; avoid sharing of tools and work equipment; increase the availability of handwashing facilities and hand sanitisers; issue anti-bacterial wipes and tissues to staff, and remind everyone to maintain good personal hygiene practices, including regular hand washing. Prominent and repeat signage will be vital in reminding workers of these steps they can take to protect themselves.
PPE – e.g. disposable gloves and face masks – are not currently legally required in the UK, but especially where social distancing might not be possible, it may be necessary to make appropriate PPE available to staff. If so, you will need to make sure there is enough available train everyone so it used properly and provide for safe disposal of used items.
MOST IMPORTANTLY – communicate with your people; invite their input and suggestions and act on them. Communication and participation in the process of a safe return to work are going to be crucial to its’ success.
Monitor for illness: train managers how to spot the symptoms of COVID-19 and have a clear process if someone is potentially infected. Continue to remind staff to only come into work if they are well and not experiencing any symptoms. A number of businesses are planning on using testing and screening methods, such as temperature checks. Remember, these steps create data privacy considerations which you will need to consider.
Do not forget existing health and safety obligations, such as maintaining sufficient numbers of fire marshals and first aiders on-site. Employers should also be aware that the Health and Safety Executive must be notified under RIDDOR of any workplace incidents that lead to exposure to COVID-19 and any cases where there is “reasonable evidence” that it was caused by exposure in the workplace. Be aware that workers are being encouraged to report to HSE failures of their employers to keep them safe from the threat of the virus.
Yes. The system for Probate Applications has moved on-line and continues to be available as well as by post. However, if you need to complete an Inheritance Tax Return IHT400 you are likely to experience problems collating information due to delays in many organisations being able to provide you with current values while their offices are closed and staff working remotely. Property valuations will be particularly problematic where surveyors or valuers are unable to attend properties to undertake non-urgent work. If you cannot wait, you must use your best endeavours to be as accurate as possible as regards the information you provide in the IHT400 and follow up by providing HMRC with actual values as soon as you can do so. HM Courts and Tribunal Service is however warning that delays can be expected at this time.
Yes. You can continue to fully furlough employees until 30 September 2021 (but from between 1 August 2020 and 31 December 2020 and from 1 July 2021 you need to contribute to the cost). If on full-time furlough, employees continue not to be able to undertake any work for you. As before, they can undertake training, or volunteer or work for another employer or organisation (if contractually allowed).