Corporate Insolvency and Governance Act: Difference between revisions
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*Introduced a credit moratorium for businesses, to give them more time to seek a rescue. | *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. | *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 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. | *Temporarily prohibited creditors from filing statutory demands or winding up petitions for COVID-19 related debt. | ||
Revision as of 16:40, 14 October 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.
- 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
- 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
- Moratorium
- Restructuring plan
- Scheme of arrangement
- Solvency
- Statement of affairs
- Statutory demand
- Voluntary liquidation
- Winding up petition
- Wrongful trading
