Insolvency System Update
Last updated Monday 30 March - 16:21
Business Secretary Alok Sharma has announced that new measures are to be introduced to improve the insolvency system to help businesses hit by the coronavirus crisis. The measures will give firms “extra time and space to weather the storm and be ready when the crisis ends whilst ensuring creditors get the best return possible in the circumstances.”
The new rules will allow companies undergoing restructuring to continue access to supplies and raw materials. There will be a temporary suspension of wrongful trading provisions for company directors to remove the threat of personal liability during the pandemic, which will apply retrospectively from March 1. Companies required to hold annual general meetings will be able to do so flexibly in a matter compatible with public health guidance. I.e. by postponing or holding the AGM online, or by phone using only proxy voting.