Corporate Insolvency and Governance Act

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Law - UK - insolvency - COVID-19.

(CIGA).

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.


The temporary measures were orginally scheduled to end on 30 September 2020.

They were subsequently extended to June or September 2021, depending on the measure.


See also