Corporate disputes fuelled by Covid-19 decisions ‘set to rise’

Company directors should be braced for decisions they made in the heat of the Covid-19 pandemic to be brought into question, according to a litigation lawyer.

John Bett, head of dispute resolution and litigation at Lindsays, believes these challenges could trigger a rise in the number of corporate legal disputes.

He warned that directors of businesses of all sizes need to be more aware of their legal responsibilities in case they run into issues, whether financially, about the actions they have taken – or both.

The pace of the pandemic – particularly in its early phases – left many directors making business critical decisions with little or no time to consult or fully consider the implications.

These include taking emergency loans later deemed as unnecessary, that the high interest rates of any borrowing may not have been appreciated or monies paid to directors in anticipation of a future dividend

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