Corporate Insolvency and Governance Act: Difference between revisions

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imported>Doug Williamson
(Expand defiinition. Source: The Treasurer, October 2020, p40.)
imported>Doug Williamson
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* [[Statement of affairs]]
* [[Statement of affairs]]
* [[Statutory demand]]
* [[Statutory demand]]
* [[Termination clause]]
* [[Voluntary liquidation]]
* [[Voluntary liquidation]]
* [[Winding up petition]]
* [[Winding up petition]]

Revision as of 22:14, 14 October 2020

Law - UK - insolvency - COVID-19.

The UK's Corporate Insolvency and Governance Act 2020 was enacted in response to COVID-19.

It also accelerated a number of other reforms to UK insolvency law.


Among other changes, the Act:

  • Introduced a credit moratorium for businesses, to give them more time to seek a rescue.
  • Prohibited termination clauses engaging on insolvency, to prevent suppliers ceasing supply or asking for additional payments while companies enter rescue proceedings.
  • Introduced a new business restructuring plan procedure.
  • Temporarily removed the threat of personal liability for wrongful trading for directors seeking to keep companies afloat during the crisis.
  • Temporarily prohibited creditors from filing statutory demands or winding up petitions for COVID-19 related debt.


See also