Corporate Insolvency and Governance Act
From ACT Wiki
UK law - COVID-19.
The UK's Corporate Insolvency and Governance Act 2020 was enacted in response to COVID-19.
Among other temporary changes, the Act:
- Introduces a credit moratorium for businesses.
- Prohibits termination clauses engaging on insolvency, to prevent suppliers ceasing supply or asking for additional payments while companies enter rescue proceedings.
- Removes the threat of personal liability for wrongful trading for directors seeking to keep companies afloat during the crisis.
- Prohibits 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
- Credit moratorium
- Creditors
- Individual Voluntary Arrangement
- Insolvency
- Insolvency practitioner
- Insolvency Service
- London Approach
- Scheme of arrangement
- Solvency
- Statement of affairs
- Statutory demand
- Termination clause
- Voluntary liquidation
- Winding up petition
- Wrongful trading
