Further extensions of measures introduced in the Corporate Insolvency and Governance Act (2020)

Some of the measures the government introduced in June 2020 to help protect businesses from insolvency during the coronavirus pandemic have been further extended:

On 9 December the government announced that the temporary suspension of the use of statutory demands and winding-up petitions, which was due to expire on 31 December, will be extended to 31 March 2021.

Previously, on 25 November, the government announced the reinstatement of the temporary removal of the threat of personal liability for wrongful trading from directors until 30 April 2021.  This suspension of personal liability had ended on 30 September and the reinstatement is effective from 26 November 2020.

In addition, companies and other qualifying bodies which are obliged to hold AGM’s will continue to be able to hold these meetings virtually until 31 March 2021 so that shareholders can participate in company business and decisions remotely.  The provision had been due to expire on 31 December.

In September 2020 the prohibition of termination clauses and the modifications to the new moratorium procedure, which were both introduced in the Corporate Insolvency and Governance Act (2020), were extended to 30 March 2021.