Corporate governance and coronavirus

ICSA, the corporate governance institute, defines corporate governance as ‘the system of rules, practices and processes by which a company is directed and controlled’. The COVID-19 crisis presents health, wellbeing and financial issues to both people and business, as well as severe disruption of operations across functions.

The UK government and regulatory bodies have taken several steps in the last year to help businesses sustain corporate governance through the crisis.

Read this factsheet to: 

1. Understand which areas of corporate governance have or continue to be affected by the crisis.
2. See links to relevant and trusted resources to help you plan. 

Principles for good corporate governance during crises 

Considerations for businesses could include: 

• Keep the Board engaged and informed with virtual board meetings wherever possible 

Manage working capital: 

• Liquidity and working capital requirements may naturally come under strain 
• Assess short-term requirements of cash and sources available, such as lines of credit, accounts receivable financing, customer advances, etc. 

Continue to meet statutory obligations: 

• Stay abreast of relaxations provided by government and monitor the financial close reporting that will most likely happen remotely 
• Ensure integrity and transparency in managing external reporting 
• Sustain continued performance of internal controls and ensure data security 
• Work with accountants and auditors where appropriate with regards to auditing processes a