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 (Expand defiinition. Source: The Treasurer, October 2020, p40.) |
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''UK | ''Law - UK - insolvency - COVID-19''. | ||
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. | ||
It also accelerated a number of other reforms to UK insolvency law. | |||
Among other changes, the Act: | Among other changes, the Act: | ||
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* [[Company voluntary arrangement]] | * [[Company voluntary arrangement]] | ||
* [[Cost of financial distress]] | * [[Cost of financial distress]] | ||
* [[COVID-19]] | |||
* [[Creditors]] | * [[Creditors]] | ||
* [[Individual Voluntary Arrangement]] | * [[Individual Voluntary Arrangement]] | ||
Revision as of 16:43, 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
- Balance sheet insolvent
- Cash flow insolvent
- Chapter 11
- Company voluntary arrangement
- Cost of financial distress
- COVID-19
- 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
