The Corporate Insolvency and Governance Bill was first read to Parliament on 20 May 2020. It is set to be fast tracked into legislation and will likely be law by 10 June 2020.

Whilst some of its measures are designed to provide temporary relief during the COVID-19 crisis, it also includes provisions which will have a lasting impact on insolvency law and the ability of creditors to enforce payments. In addition to companies with financial difficulties however, it will have a significant impact on all those who trade with them, including customers, suppliers and landlords. Directors will also need to be carefully guided around the genuine prospects of a company being able to trade as a going concern where the mid to longer term impacts of the current circumstances may well remain uncertain.

We discuss the Bill, what it includes and what it means for businesses in this document.

Originally published 22 May 2020

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.