Clifford Chance

Coronavirus: Financial distress triggered by the impact of the Coronavirus - Tip sheet for Shareholder Directors in the UK

27 March 2020

Many boards face unprecedented situations and challenges ahead. Directors representing shareholders (such as private equity investors), need to act with all directors to consider the economic challenges brought about by the sudden and wide-ranging economic impact of the novel coronavirus (COVID-19).

In addition, such representative directors must be acutely sensitive to managing conflicts and tensions relating to their appointing shareholder to ensure they fulfil their primary duty as a director, and take care not to expose their appointing shareholder and investment teams to liability.

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