Corporate Insolvency and Governance Act: Difference between revisions
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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) |
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* [[Insolvency Service]] | * [[Insolvency Service]] | ||
* [[London Approach]] | * [[London Approach]] | ||
* [[Moratorium]] | |||
* [[Restructuring plan]] | |||
* [[Scheme of arrangement]] | * [[Scheme of arrangement]] | ||
* [[Solvency]] | * [[Solvency]] | ||
Revision as of 16:39, 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.
- 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
