With the business world in turmoil due to the rapid spread of the coronavirus and our determined efforts to bring it under control, company directors need to proceed with caution over the coming weeks and months to ensure that decisions made under pressure can be justified and that they stand up to scrutiny in the event they are subsequently challenged.

When you come to sell your business there will probably be a difference between the price that you think your business is worth and the amount that a buyer wishes to pay you. A possible middle ground is to negotiate an 'earn out' which is a structure whereby on the sale of a company you receive an initial amount, and then further sums will be paid dependent on the performance of the business following the sale.

With more cases of coronavirus (COVID-19), being reported in the UK each day, employers will be wondering how to handle the issue especially as they may need to react fast if a situation develops in the workplace or if there are concerns about the health of a particular employee.

Changing an individual's working arrangements from employee to consultant may seem attractive; no employer National Insurance contributions to pay and greater flexibility for the individual. A win-win situation surely?

A company may choose to restructure its shares and issue different classes of share for a variety of reasons, such as raising capital, reducing debt, attracting investment, incentivising key company executives and launching a new subsidiary or spin-off company.

If you have decided that a limited company is the best vehicle for your new business, there are a number of important points to consider whilst you set up the company to minimise potential complications in the future.

If getting paid on time is a growing problem for your business, is it time that you reviewed your invoices and terms and conditions to ensure that they are not leaving you open to the risk of bad debt?

When you extend credit to a customer it is very easy to forget that it is the same as handing over cash. In order to preserve and protect the financial health of your business, it is vitally important to ensure that you regularly review and update your contractual terms with your customers, suppliers and contractors. This will ensure that your contractual relationships grow and adapt alongside your business. A new business, of course, will do very well to have a robust set of terms and conditions at the outset.

As your business grows and evolves, you may wish to bring new directors onto the board to reward and secure key members of staff or to bring in new skills and contacts from outside your business. In either case, the appointment of a new director to the board of your company is not as straightforward as it may seem.

Aside from the obvious duties such as filing reports at Companies House, there are numerous other obligations placed upon company directors. If you fail to comply with your duties your position on the board may be under threat, as you can be held liable by the company and in some circumstances by minority shareholders. In the most serious of cases directors may be disqualified or face criminal sanctions.