Following its first reading in Parliament in May 2020, the Corporate Insolvency and Governance Bill 2020 which contains measures to both temporarily suspend and permanently amend insolvency and company law, has now received royal assent (as at 25 June 2020). The bill is now the Corporate Insolvency and Governance Act 2020 (‘the Act’).

The content of the Act is predominantly the same as when the bill was first introduced into parliament (further detailed in our blogs, 'An overview of the Corporate Insolvency and Governance Bill 2020' and 'Commercial landlords banned from aggressive rent collection'). However, significantly the “relevant period” applicable to the temporary measures originally drafted to expire on the later of 30 June 2020 or one month after the bill’s enaction, has been extended to 30 September 2020. This is applicable to the following measures:

1. Suspension of wrongful trading;

2. Ban on statutory demands generally and winding-up petitions for Covid-19 related debts; and

3. Company filing deadlines and annual general meetings / general meetings.

The Act incudes provision for the Secretary of State to extend the measures in 6-month increments after 30 September 2020, if they consider it reasonable to do so to mitigate the effect of coronavirus. It is therefore likely that these protective measures will remain in place until the Government takes the view that coronavirus is no longer significantly impacting the economy.

Need advice? Get in touch today

If you would like further information or require advice in relation to the contents of this blog, please contact either of the following members of our specialist team:

• Steve Dillon (Head of Insolvency) on 01482 590232 / 07967 513408 or email Steve by clicking here.
• Farhana Choudhury (Trainee Solicitor) 01482 590125 or email Farhana by clicking here.