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The COVID-19 virus, and the measures adopted by the Dutch government as a consequence, not only have a profound impact on public life, but also have an impact on the process of adopting resolutions by legal entities. Due to the requirement, either by law or based on the Articles of Association, that a physical meeting is held, many legal entities find themselves in a situation where it has become impossible to hold meetings, due to the ban on public gatherings. This situation affects all legal entities with numerous shareholders or members, and ranges from public companies listed on a stock exchange to associations. As a result, many legal entities are unable to validly adopt resolutions.

Directors of companies in financial distress are confronted with many different issues, including liability issues. More information about these liability issues is provided in this article.

The coronacrisis has an enormous impact on the economy and thus on businesses. Although the economic outlook varies, in general the outlook is not optimistic, and a recession seems inevitable. In these times, companies are often confronted with liquidity shortages due to the loss of turnover and customers suspending payments. Against this background, it is not illogical to re-evaluate intended investments, transactions and collaborations critically: is it really necessary to enter into these commitments now or would it be more prudent to break-off negotiations in view of the (partly unknown) consequences of the coronacrisis? The question that arises is, however, to what extent the parties are still free - without being liable - to walk away from such negotiations.

The Dutch government has taken important measures in order to minimise any liquidity issues that companies may be facing as a result of the Covid-19 outbreak. Emergency Fund Bridging Employment (NOW) Deferral of payment of various taxes Compensation for Entrepreneurs in Affected Sectors Covid-19 (TOGS) Financial support for microcredit provider Qredits

Six Dutch major banks, non-bank related lenders and financing platforms apply eased policies towards companies in financial distress that cannot comply with their existing financial obligations. More information is provided in this article.