Government extends insolvency measures
28th September 2020
Measures introduced to protect businesses from insolvencies will be extended to give business owners the opportunity for “much-needed breathing space” during the COVID-19 pandemic, the Government has announced.
The Government announced a raft of changes to protect businesses from insolvency in the Corporate Insolvency and Governance Act, which was due to expire on 30 September.
Some of these measures include more flexibility for companies and other qualifying bodies when holding AGMs until 30 December 2020, as well as statutory demands and winding-up petitions being restricted until 31 December 2020.
The Government also announced termination clauses are still prohibited, which stops suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process.
However, small suppliers will remain exempted from the obligation to supply until 30 March 2021, alongside the modifications to the new moratorium procedures.
Business Minister Lord Callanan said:
“It is vital that we continue to deliver certainty to businesses through this challenging time, which is why we are now extending these important and necessary measures to protect companies from insolvency.
“Through this measure, we want to ensure businesses are able to not only come through this testing period, but also to plan, adapt and build back better.”
Speak to us to discuss your options.