New Corporate Insolvency & Governance Act

Changes to timeframes in the Corporate Insolvency and Governance Act 2020 came into force on 29 September. The Act introduced several temporary measures due to expire on 30 September 2020, which have now been extended:

Provisions enabling companies and certain other qualifying bodies (including English/Welsh CIOs) to hold virtual AGMs are extended until 30 December 2020;

Restrictions on statutory demands and winding up petitions are extended until 31 December 2020;

The small supplier exemption from restrictions on terminating supply contracts are extended to 31 March 2021; and

Modifications to the new moratorium procedure (including eligibility conditions) are extended until 30 March 2021.

Other provisions have not been extended. The temporary rules offering trustees/directors some protection from ‘wrongful trading’ expire on 30 September 2020 after which they will no longer be effective. Trustees/directors could be liable to contribute personally towards the debts of their company if it is heading towards insolvency and they fail to take steps to minimise losses. Read more

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