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Financial distress – The board’s role

Author(s): Mary Paterson, Andrew MacDougall, Marc Wasserman

April 2020

COVID-19 has shaken the stability of even the most well-grounded organizations. Companies are navigating the uncharted waters of a global pandemic, unprecedented physical distancing and the devastating financial impacts that flow from both.

Being on the board of a company requires being alert to the signs of potential financial issues and being ready to take prompt action.

A recent survey and roundtable discussions conducted by Osler and the Institute of Corporate Directors addressed the issue of board preparedness in situations of financial distress and revealed a surprising number of information gaps in board oversight practices. These results are analyzed in a new report, Financial distress – The board’s role.

Download the report to learn more about these concerning information gaps and how boards can better prepare to deal with financial distress by taking a number of steps while the organization is still solvent, including:

  • Working with management to identify regular reporting metrics
  • Developing a financial distress plan
  • Understanding the options available to an organization in financial distress

In these uncertain times, advance planning leads to more opportunities to manage financial distress and better outcomes for the organization.

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