The Corporate Insolvency and Governance Act 2020 received royal assent on 25 June 2020 and introduces flexibility into the insolvency legislation to help businesses continue trading through the coronavirus pandemic. Most of the Act came into force on 26 June 2020.
The Act covers three broad policy objectives:
helping companies to survive by making the insolvency regime more flexible, to provide breathing space to explore options for rescue while supplies are protected;
temporarily suspending parts of insolvency law to help directors continue trading without the threat of personal liability and to protect companies from aggressive creditor action; and
providing temporary easements on company filing requirements and the usual requirements relating to meetings including AGMs.
Many of the measures introduced by the Act are applied to limited liability partnerships by the Limited Liability Partnerships (Amendment etc.) Regulations, SI 2020/643, which also came into force on 26 June.
The Corporate Insolvency and Governance Act 2020 received royal assent on 25 June 2020 and introduces flexibility into the insolvency legislation to help businesses continue trading through the coronavirus pandemic. Most of the Act came into force on 26 June 2020.
The Act covers three broad policy objectives:
helping companies to survive by making the insolvency regime more flexible, to provide breathing space to explore options for rescue while supplies are protected;
temporarily suspending parts of insolvency law to help directors continue trading without the threat of personal liability and to protect companies from aggressive creditor action; and
providing temporary easements on company filing requirements and the usual requirements relating to meetings including AGMs.
Many of the measures introduced by the Act are applied to limited liability partnerships by the Limited Liability Partnerships (Amendment etc.) Regulations, SI 2020/643, which also came into force on 26 June.
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