For the first time in years, the state of the UK’s economy is putting many companies, large and small, under intense pressure. A string of profit warnings, and in many cases the announcement of hefty losses, mean that the threat of insolvency – something which for the best part of a decade companies and their boards of directors have had no reason to fear – cannot be dismissed. For many, survival is now the name of the game.
In these circumstances, however, it is unusual for a board of directors to turn to their legal team first for advice on the way forward. In the cases of some of the UK’s most spectacular corporate collapses, it is highly unlikely that the companies’ heads of legal knew a great deal prior to the event – particularly when allegations of illegal activity subsequently surface.
