The UK government introduces Insolvency Bill to Help Covid-Hit Companies
20 May The UK government introduced the Corporate Governance and Insolvency Bill in Parliament, which will put in place a series of measures to amend insolvency and company law to support business to address the challenges resulting from the impact of coronavirus (COVID-19).
New insolvency legislation temporarily bans landlords from making legal claims for rent owed by businesses hit by COVID-19. The move, described by Colin Haig, president of restructuring trade body R3, as the biggest shake-up of insolvency laws for two decades, is designed to head off a rash of coronavirus-induced bankruptcies.
Under the bill, U.K. companies will have access to new tools to restructure their debt in order to keep operating through the crisis.
The rules temporarily suspend wrongful trading provisions, allowing companies to keep operating without the threat of personal liability to directors. They also suspend the use of written warnings from creditors and winding up petitions against companies that are unable to pay their debts due to the impact of the coronavirus crisis. The goal is to protect “otherwise viable companies” from collapse.
In addition, the rules temporarily lift regulatory requirements on the timing of annual general meetings and allow extensions to deadlines for submitting information to Companies House, the government body which deals with the regulation of limited companies.
Posted on 19.05.2020.
We provide services
Other useful articles
- Upper Tribunal says that article 8 rights of overseas family members must be considered
- Government pledges new support to prepare for EU border checks
- Home Secretary announces new measures to boost Britain’s border security
- No discrimination found against Afghan man blocked from Ukraine visa schemes
- “Smart” borders to start operating from 2025: new rules for entry into the Schengen area for citizens of the UK and other countries
- UK economy continues recovery with 0.6% growth
Get specialist advice
Please contact with one of our immigration lawyers by phone +44 (0) 207 907 1460 (London), +971 509 265 140, +971 525 977 456 (Dubai) or complete our enquiry
Contact us