An emergency framework of laws and vague regulations related to the coronavirus pandemic, coupled with an unprecedented cashflow crisis, has left businesses reeling. Michael Fiddy and Amy Jacks, partners in the restructuring team at Mayer Brown, outline the key fiduciary and moral directors’ duties
Governments, schools, businesses and each of us as individuals are all trying to rationalise the impact of covid-19. The environment is incredibly challenging because the breadth and depth of the impact has been so fast and the duration of the effect is currently so uncertain.
In previous downturns, commentators have often referenced the mantra that ‘markets can stay irrational longer than you can stay solvent’ - the question now appears to be whether or not the virus will remain virulent for longer than you can stay solvent.
Running a business is difficult enough in economically challenging times, even with the absolute freedoms that are ordinarily in place. We all now have to look to adapt to the new norm with an ever-developing emergency framework of laws and regulations, differing from jurisdiction to jurisdiction, which then have to be overlaid by duties, both fiduciary and moral.
