In the context of the COVID-19 outbreak, many organisations are facing unprecedented corporate challenges which they have to respond to rapidly to ensure business continuity. We have identified a number of topics that you need to consider:
The Board of directors can be held personally liable for a company’s inability to pay its debts and its consequential dissolution and winding up:
The COVID-19 pandemic has led to a sudden need for deferrals or cancellation of obligations (including rental payments) without leaving much time for conclusive discussions between landlords and tenants and vendors and purchasers:
Employers have been pushed to resort to extreme measures to save their business such as redundancies and changes in employment terms and conditions.
Many businesses have reacted by transferring most of their activity online.
The current situation has brought about uncertainty, which has led to delay in performance of contractual obligations.
Disclosure obligations have become stricter and issuers must disclose any knowledge of a significant impact on their business, performance or prospects due to COVID-19.
Employees are working outside their normal territories, which could lead to a taxable presence risk. Board meetings held electronically may cause a tax residence risk, exposing entities to significant income tax liabilities and potential exit taxation. Projects are also taking longer than expected which might trigger withholding tax obligations: