Friday, June 26, 2020

Corporate Insolvency & Governance Bill

The Corporate Insolvency and Governance Bill received Royal Assent on 25 June, and has become an Act of Parliament.

The legislation offers new flexibilities in the insolvency and company law frameworks, giving companies breathing space to help get through this difficult economic time.

You can find factsheets about the bill and the measures within it here.

Working with R3, the Association of Business Recovery Professionals, BEIS are hosting webinars on what the measures mean for business, offering an opportunity to put questions to specialists.

On Tuesday 30th June there will be a webinar covering the corporate governance measures – which provide flexibilities to companies in how they run their AGMs (where relevant), and filings at Companies House. You can book a free place here.

On Tuesday 7th July there will be a webinar covering the insolvency measures, which include a temporary relaxation of the rules on wrongful trading, and the law governing winding-up petitions. There are also new permanent changes to the insolvency framework, offering a new moratorium to give companies breathing space from their creditors while they seek a rescue; introducing a new restructuring plan for companies in financial distress; and prohibiting termination clauses that engage on entering an insolvency procedure, preventing suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process. You can book a free place here.

The Legal and Commercial team at BESA will be preparing a useful set of guidance for members which will be issued w/c 29th June.

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