For the purposes of the Companies Act 1993 (CA 1993), a director of a company agreeing to, causing or allowing the company's business to be carried on in a manner likely to create a substantial risk of serious loss to the company's creditors (section 135, CA 1993).

The COVID-19 Response (Further Management Measures) Legislation Act 2020 temporarily gave directors of companies facing significant liquidity problems because of the 2019 novel coronavirus disease (COVID-19) outbreak a "safe harbour" from their duties under section 135 of the CA 1993 (see Schedule 12 of the CA 1993).

For more information, see Practice note, COVID-19: corporate insolvency law changes: Directors' duties: temporary safe harbour.