UKP Corporate Insolvency Bill

On May 20, UKP issued corporate insolvency and governance bill.

  • UKP issued the Corporate Insolvency and Governance Bill 2019-21, which makes provision to relieve burden on businesses and support economic recovery during Covid.
  • Also temporary law changes to governance, regulation of companies and other entities.
  • Features
  • The bill will allow businesses to focus efforts on continuing to operate during the crisis.
  • Introduce temporary easements on filing duties and Annual General Meetings (AGMs).
  • More flexibility around when/how AGMs held, extensions to deadlines for confirmation statements, accounts registrations of charges (mortgage), event-driven filings.
  • Temporarily suspend parts of insolvency law to support directors during pandemic.
  • Moratorium to give companies breathing space from creditors while seeking a rescue.
  • Prohibit termination clauses that engage on insolvency, prevent suppliers from ceasing their supply or asking for more payment while company in the rescue process.
  • Enable the insolvency regime to flex to meet the demands of the current emergency.
  • Temporarily remove personal liability threat for wrongful trading by directors trying to keep companies afloat, an creditors from filing statutory demands for Covid debts.
  • Allow for temporary measures to be retrospective so as to be as effective as possible.
  • Next Step
  • MPs will next consider all stages of the bill on Jun. 3, 2020.

Regulators UKP
Entity Types B/D; Bank; Corp; IA; Ins; Inv Co
Reference UK Bill, 2019-21, 5/20/2020; COVID-19
Functions Compliance; C-Suite; Financial; Operations; Research; Resolution; Risk; Treasury
Countries United Kingdom
Products Banking; Corporate; Equity; Fund Mgt; Insurance; Loan; Securities
Regions EMEA
Rule Type Guidance
Rule Date 5/20/2020
Effective Date 6/3/2020
Rule Id 78090
Linked to
Reg. Last Update 5/20/2020
Report Section UK

Last substantive update on 05/21/2020