How will the new Corporate Insolvency and Governance Bill affect my business?
The introduction of the new Corporate Insolvency and Governance Bill has been a far-reaching aid to businesses disrupted by the COVID-19 pandemic, although some of those measures are somewhat controversial.
The Bill was partly brought into force on 26 June 2020 but unusually some measures will have retrospective effect in order to maximise the support and protection offered.
In this three part series, we will consider some of the measures brought in by the Bill and its affect on both struggling businesses, and those in business with them.
These measures will naturally be a welcome relief to those who have been suffered significant disruption under recent lockdown restrictions. Everyone has felt the impact of recent months, but for some industries, most notably those in the hospitality, travel, recruitment and beauty industries, the next few months will try the strength and continued viability of their businesses. The measures offered in the Bill create greater protection to businesses seeking to avoid falling into insolvency with huge debts.
However, the support offered by these new provisions does come at a significant price to others, in particular for creditors and suppliers to struggling businesses.
Please follow the links below to read our three part series about the new Corporate Insolvency and Governance Bill:
- Part 1 – Statutory demands, winding up petitions and considerations for creditors
- Part 2 – Company law in the time of COVID-19
- Part 3 – Impact of COVID 19 on supply chains