Corporate Insolvency and Governance Bill introduced to help businesses during pandemic

• The Department for Business, Energy and Industrial Strategy (BEIS) announced the introduction of the new Corporate Insolvency and Governance Bill on Wednesday 20 May.

Under the Bill:
• Temporary easements on filing requirements and Annual General Meeting (AGMs) will be introduced.
• New corporate restructuring tools to the insolvency regime will be introduced, this will give companies enough time to maximise their chance of survival.
• Parts of insolvency law will be temporarily suspended in order to support directors during the pandemic.

The temporary easements will include more flexibility around when and how AGMs are held and extensions to deadlines for:
• confirmation statements
• accounts
• registrations of charges (mortgage)
• event-driven filings, e.g. a change to your company’s directors of people will significant control

Many of the Bill’s measures require secondary legislation before they come into force which will be introduced in due course.

If you require an extension to meet your accounts filing deadline, you should apply for a 3 month extension. If you cite COVID-19 as an issue, you will automatically be granted an extension.

 

This article is prepared with the intention of providing general information on the changes in law. Philip Ross Solicitors accept no responsibility for errors it may contain and the coverage of the topic is not comprehensive. You are advised to speak directly to Georgina Kyriacou or another partner within this firm within any specific enquiries on the topic addressed.

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Georgina is a solicitor with nearly 30 years of experience in advising substantial businesses on complex legal issues and providing strategic and commercial solutions.