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.
- 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.
||B/D; Bank; Corp; IA; Ins; Inv Co
||UK Bill, 2019-21, 5/20/2020; COVID-19
||Compliance; C-Suite; Financial; Operations; Research; Resolution; Risk; Treasury
||Banking; Corporate; Equity; Fund Mgt; Insurance; Loan; Securities
|Reg. Last Update
Last substantive update on 05/21/2020