On 24 March 2021 The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 (‘Regulations’) were laid before the UK Parliament and will come into force on 26 March 2021. The Regulations can be found here.
The Regulations amend a number of provisions within the Corporate Insolvency and Governance Act 2020. For ease of reference, the amendments are as follows –
1. The suspension of liability for wrongful trading in Great Britain continues until 30 June 2021 for directors who continue to trade a company through the pandemic with the uncertainty that the company may not be able to avoid insolvency in the future. (Link)
2. Termination clauses are still prohibited – Small suppliers will remain exempted from the obligation to supply until 30 June 2021. (Link)
3. The modifications to the new moratorium procedure, which relax the entry requirements to it, will also be extended until 30 September 2021. A company may enter into a moratorium if they have been subject to an insolvency procedure in the previous 12 months. (Link)
4. Statutory demands and winding-up petitions will continue to be restricted until 30 June 2021. (Link)
Further analysis available below.