The Corporate Insolvency and Governance Act 2020 is alive. Here's what it does for Great Britain.
- A creditor's ability to ask the court to wind up a company which owes them money is likely to be paralysed up to 30 September 2020 - and that date can be extended. Winding up can now only be sought and will only be ordered by the court if the creditor can show that coronavirus has not had a financial effect on the company or the company's indebtedness to the creditor would have arisen even if coronavirus had not had a financial effect on the company.
- The potential liability of a company director for wrongful trading (for example, continuing to trade and take customers' money when it was known or should have been known that the company was insolvent) is suspended for what the director did or omitted to do during the period O1 March 2020 to 30 September 2020 and, again, this period is extendable.