economy is going down in an unprecedented manner, creating absolute uncertainty
for the future. Similarly, several corporates are facing a plunge in the
revenues in proportion with the speed of the spread of the deadly virus. Amid
such a time, eminent corporate lawyer and entrepreneur -- Gautam Khaitan
suggests the board of directors to lead from the front in such a crisis to
survive business disquietude.
first thing the board must do is to identify possible risks emerging from the
pandemic and to ensure the well being of the workforce and the stakeholders,” says
Khaitan. He suggests the board to analyze the impact of the pandemic on the
operations of the firm (productivity, quality, quantity, and the overall supply
chain management) and the legality involved if there are any deviations and
disruptions in the operations.
are the backbone of any organization, an integral part of running a business.
In such a time when businesses are facing a severe cash crunch, “the board must
conduct frequent briefings about the financial health of their business. It
involves working on the liquidity needs, indebtedness, lines of credit,” he
mode of communication with the stakeholders, regulatory and other agencies can
help in easing the compliances in such extraordinary difficult situations,” says
Khaitan. Frequent discussions can result in evading the loss of exploiting
opportunities in adverse situations.
communication between the CEO, CFO, and other office bearers will result in
utilizing the best out of the limited resources especially when the physical
movement of the people is restricted”. Board members have long experience of
successfully running a business, frequent discussions can positively impact the
functioning of the business positively.
compliance can prove to be a bone in the throat if they are overlooked
frequently. “In the light of the prevailing conditions, compliances such as
mandatory disclosures under SEBI, contractual issues involving force majeure
and frustration of contracts, it becomes the responsibility of the board of
directors to ensure such issues are not ignored. They must ensure that the
company does not adopt any adversarial strategy to mitigate short term issues
resulting in straining long-term relations,” he suggested.
in India form the great chunk of the economy employing millions. Successful
running of the businesses is the solution to restoring the nation’s progressive
economy on the track. Right leadership amid such difficult time cannot only
navigate the organisation through choppy water but can bring fortunes.