The UK will leave the EU single market, Customs Union, and VAT and excise duty area on 31 December. From 1 January 2021, the UK will operate its own external border as a sovereign nation. Is your business ready for the looming deadline of Brexit? Dealing with Brexit and the ongoing uncertainties about the COVID-19 pandemic, mean businesses and owners are in for a tough ride over the next few months, possibly much longer if the UK continues to face restrictions and possible additional tariffs, supply challenges and economic uncertainty due to Brexit.
Business owners need to make difficult decisions about the future viability of their businesses, which is not easy in the current environment. Those decisions need to be taken carefully in light of directors’ duties to act in the best interest of the company and its creditors as a whole. Directors may decide that there is no longer a viable business and retaining employees, taking on further debt or even continuing the business may no longer be in the company’s best interests. If directors do not act in the best interests of the company and, in particular, its creditors, there is increased risk of personal liability for directors if the financial position of the company deteriorates.
Our brochure contains a number of guides to help navigate these difficult decisions, but the key for all directors is to act now and take advice to minimise the risk of personal liability.