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Bloomsbury Professional Law Insight - Corporate Insolvency and Governance Act 2020
Paul Keddie , Simon Beale , Tim Bromley-White
Having gone through an accelerated parliamentary process, the Corporate Insolvency and Governance Act 2020 came into force on 26 June, 2020 having been given Royal Assent on the 25 June, 2020.
It introduces the most significant changes in corporate insolvency law for nearly 20 years and has been introduced in response to COVID-19. Its main aim is to assist companies and directors by providing businesses with the flexibility and breathing space they need to continue trading during the difficult time caused by COVID-19.
The key insolvency related reforms included in the Act are:
- New moratorium outside of a formal insolvency process
- New restructuring plan
- Prohibition on issuing statutory demands and winding up petitions in connection with Covid-19 related debts
- Retrospective suspension of wrongful trading
- Protection of supplies of goods and services
It introduces the most significant changes in corporate insolvency law for nearly 20 years and has been introduced in response to COVID-19. Its main aim is to assist companies and directors by providing businesses with the flexibility and breathing space they need to continue trading during the difficult time caused by COVID-19.
The key insolvency related reforms included in the Act are:
- New moratorium outside of a formal insolvency process
- New restructuring plan
- Prohibition on issuing statutory demands and winding up petitions in connection with Covid-19 related debts
- Retrospective suspension of wrongful trading
- Protection of supplies of goods and services
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