Government extends temporary insolvency measures
On 16 June 2021, the UK Government announced that they are in the process of extending certain insolvency measures. The current company insolvency restrictions on statutory demands and winding-up petitions will remain in force for a further three months until 30 September 2021. This is to protect companies from creditor enforcement action where their debts relate to the COVID-19 pandemic.
For those of you who’ve already read the recent EDP article which featured my comments on “Zombie Companies”, this proposal will be another boost to those companies that are just keeping their head above water.
However, it has not yet been confirmed whether these proposed regulations will include an extension to suspension of liability for wrongful trading (currently due to expire 30 June 2021).
If this is not extended, directors should be wary of trading where insolvency is inevitable as it could potentially result in personal liability.
As always, please feel free to contact me or any member of the Larking Gowen Insolvency & Recovery team if this may affect you and you require further guidance.
Call 0330 024 0888 or email email@example.com
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