All operating companies in Italy are in their own way affected by the Covid-19 pandemic. In this context, directors are faced with great responsibilities, often new and in any event unexpected.
From a legal point of view, businesses must, among other things (i) comply with the rules issued by the relevant authorities in connection with the Covid-19 pandemic, (ii) implement appropriate health and safety rules at the workplace, (iii) decide whether to suspend or continue business, if permitted to do so and in that case determine the scope of the permitted activities, and (iv) manage employees and consultants.
These activities require the board to act with the necessary duty of care in order to avoid to the maximum possible extent – that employees and consultants are exposed to serious health risks.
The Covid-19 pandemic requires the board to timely verify the actual and potential impact on the company’s business, including its cash flow, budget and business plan.
This analysis exceeds ordinary administration and, in any case, requires prompt information and coordination between all corporate governance functions.