Some businesses are flying with the many new opportunities presented to them by the lockdown crisis, but many others now face serious cash flow and liquidity problems.
Now more than ever directors need to be keenly aware of their ongoing obligations in terms of the Companies Act. Failure to live up to the Act’s high standards of care risks personal liability as well as criminal prosecution.
This then is a timely reminder to all “directors” (we explain how widely defined that term is in this context) of the dangers of reckless trading. What is reckless trading? Does the recent CIPC Notice absolve you from liability? How can you minimise your risk? Read on for some thoughts…
