Government gives businesses much-needed breathing space with extension of insolvency measures

16 Feb 2021 03:49 PM

Measures from the Corporate Insolvency and Governance Act extended to relieve pressure on businesses dealing with coronavirus.

Update February 2021

The government announced it intends to extend the power (granted through the Corporate Governance and Insolvency Act) to make temporary amendments or modify the effects of corporate insolvency and governance legislation for an additional year. The government laid the regulations on 11 February 2021 in Parliament ahead of the power expiring on 30 April 2021.

Earlier updates

On 9 December 2020 the government announced it intends to extend the temporary suspension of the use of statutory demands and winding-up petitions until 31 March 2021.

On 25 November 2020 the government announced it intends to reinstate the temporary removal of the threat of personal liability for wrongful trading from directors until 30 April 2021.

The government also announced that companies and other qualifying bodies with obligations to hold AGMs will continue to have the flexibility to hold these meetings virtually until 30 March 2021. This means that shareholders can continue to examine company papers and vote on important issues remotely.