COVID-19 and directors’ duties and liabilities

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May 2020 NEWSLETTER

COVID-19 and Directors: Your Duties and Liabilities in the Coronavirus Crisis

Your focus as a director right now will no doubt be on keeping your business afloat through these trying times.

Don’t lose sight however of the fact that the onerous obligations and duties placed on all directors by the Companies Act still apply. Failure to live up to the required standards exposes you not only to a significant risk of personal liability for company debt, but also to criminal prosecution.

We recap in summary what the Act requires of you, we discuss the impact of King IV on your risk profile, and we end off with a caution on the extent to which you can rely on indemnity insurance for cover.

Tips for Managing your Staff Working from Home

One of our new realities in this topsy-turvy world of global crisis is the many businesses that have had to close their offices and work remotely.

The resultant explosion in the number of people working from their home environments brings with it many serious challenges for businesses. Fortunately however there is a lot of guidance available on how to maintain high levels of morale, loyalty and productivity amongst your work-from-home employees.

For example, researchers at Harvard University have identified five main areas as key to achieving the best possible results from a remote working situation. Read on for some thoughts on them…

How Different Will Our Landscape Be Post-Coronavirus?

Predicting the future can never be easy, but we all of us need to prepare as best we can for the future landscape that will greet us when the current COVID-19 crisis is finally over.

Perhaps we can learn a lesson or two from the history of the world’s past global pandemics and their after-effects on people, societies, and economies.

With that in mind, commentators have suggested four main trends which they think likely to characterise our post-coronavirus world.

“Forewarned being forearmed”, let’s have a look at them…

Be Ready for a SARS Lifestyle Audit

Being suddenly subjected to a SARS “Lifestyle Audit” is a nerve wracking business with the risk of penalties of up to 200%, backdated interest, and criminal prosecution.

What external sources of information does SARS have access to? How does SARS select targets for lifestyle audit? If you are unlucky enough to be selected, what will happen and how can you be prepared? Can you refuse to co-operate and/or demand access to information from SARS before complying?

We address those questions and discuss a High Court decision in which an individual faced the imprisonment for failing to answer a lifestyle questionnaire.

Your Tax Deadlines for May 2020

7 May – Monthly PAYE submissions and payments
25 May – VAT manual submissions and payments
28 May – Excise Duty payments
29 May – VAT electronic submissions and payments
29 May – CIT Provisional Tax Payments where applicable
31 May - End of Employer Annual Reconciliation.

Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for professional, detailed and appropriate advice.

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