Business Issues

Directors responsibilities

Under the 1993 Companies Act, Directors have the following duties and responsibilities:

• Identify all reasonably apparent risks.
• Quantify and assess the effect of each risk on creditors, shareholders, employees, as well as other parties.
• Not allow the Company to be put passively at risk.
• Ensure that the Company remains solvent at all times.
• Reduce, avoid or eliminate any risk that can be prudently dealt with.
• Disclose any unmanageable risks to any party potentially at risk.
• Constantly review this process.

The three critical business risk factors to be considered are:

1. Funding the cost of replacing key people.
2. Replacement of crucial revenue streams.
3. Funding the cost of contingent liabilities (such as leases and debt) and other ongoing expenses crucial to the continuance of the Company.

We can help analyse business risks, and we work with your other key professional advisers such as your accountant and solicitor to provide appropriate solutions.