Newsflash: Coronavirus provisions under the Corporate Insolvency and Governance Act 2020 extended (again!)
In our previous article about the Coronavirus provisions set out under CIGA, we outlined the Government’s decision to prolong the “relevant period” within certain areas in order to attempt to support businesses affected by the pandemic.
On 7 December 2020, the Government has announced that it will extend the measures provided by CIGA again in order to give businesses extra breathing space in some areas.
The announcement reinstates the temporary removal of the threat of personal liability for wrongful trading from directors until 30 April 2021 and gives companies and other qualifying bodies with obligations to hold AGMs the flexibility to hold these meetings virtually until 31 March 2021. However, the update is silent in regard to an extension beyond 31 December 2020 for the temporary measures in relation to winding up petitions and statutory demands, that said, we would be surprised if this protection from aggressive creditor enforcement action as a result of coronavirus related debts did not follow suit.
Please re-visit our article on CIGA provisions for more details or contact our experts if your organisation needs some advice.