Businesses feeling increasingly under pressure due to the current global health crisis have been thrown a lifeline. Insolvency rules have been relaxed retrospectively from 1 March 2020 for three months. This will allow companies in danger of collapse to continue trading.
More specifically, these changes include allowing businesses to continue buying essential supplies whilst trying to find a rescue plan. It also temporarily suspends wrongful trading provisions for company directors so as to ease directors’ ongoing anxiety relating to trading decisions.
The Government has not yet detailed how the new regime will be implemented; however, we expect further announcements sooner rather than later in view of the urgency of the situation.
If your business is likely to be under this sort of pressure or if you’re a director and concerned about your company, we would recommend that you obtain professional advice as soon as possible.
For further information, contact your usual Lubbock Fine Partner or email us at email@example.com.