Corporate Insolvency and Governance Act: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page. Sources: ACT blog 1 July 2020 https://www.treasurers.org/weekly-roundup-1-july-updates-treasury-matters-relating-coronavirus?_cldee=ZXNvdWxpQHRyZWFzdXJlcnMub3Jn&recipientid=lead-27c8dc94eb7fea118132000d3ab15408-c9d912c464cc47a8a898aa3e89cbaa6) |
imported>Doug Williamson (Update. Source: UK Gov webpage: https://www.gov.uk/government/news/government-introduces-legislation-to-relieve-burden-on-businesses-and-support-economic-recovery#history) |
||
| Line 3: | Line 3: | ||
The UK's Corporate Insolvency and Governance Act 2020 was enacted in response to COVID-19. | The UK's Corporate Insolvency and Governance Act 2020 was enacted in response to COVID-19. | ||
Among other | 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. | ||
* | *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. | ||
| Line 17: | Line 17: | ||
* [[Company voluntary arrangement]] | * [[Company voluntary arrangement]] | ||
* [[Cost of financial distress]] | * [[Cost of financial distress]] | ||
* [[Creditors]] | * [[Creditors]] | ||
* [[Individual Voluntary Arrangement]] | * [[Individual Voluntary Arrangement]] | ||
| Line 28: | Line 27: | ||
* [[Statement of affairs]] | * [[Statement of affairs]] | ||
* [[Statutory demand]] | * [[Statutory demand]] | ||
* [[Voluntary liquidation]] | * [[Voluntary liquidation]] | ||
* [[Winding up petition]] | * [[Winding up petition]] | ||
Revision as of 19:34, 24 July 2020
UK law - COVID-19.
The UK's Corporate Insolvency and Governance Act 2020 was enacted in response to COVID-19.
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.
- 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
- Balance sheet insolvent
- Cash flow insolvent
- Chapter 11
- Company voluntary arrangement
- Cost of financial distress
- Creditors
- Individual Voluntary Arrangement
- Insolvency
- Insolvency practitioner
- Insolvency Service
- London Approach
- Scheme of arrangement
- Solvency
- Statement of affairs
- Statutory demand
- Voluntary liquidation
- Winding up petition
- Wrongful trading
