Wednesday, 24 March 2021

COVID-19: COMPANIES 0FF HOOK FOR LONGER:LATEST

In legislation laid before Parliament today 24 March 2021 - alright, you win: it's called the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 SI 2021/375 - there is further respite for companies. The restrictions on serving statutory demands on and issuing winding up petitions against them which was due to have ended on 31 March 2021 has been extended by three months until 30 June 2021. Additionally, the temporary assumption that directors are not liable for 'wrongful trading' by carrying on with the company's business while its financial position may worsen which was due to come to an end on 30 April 2021 has been extended to 30 June 2021.