COVID 19- Impact of Corporate insolvency & governance bill

COVID-19--Impact-of-Corporate-insolvency-&-governance-bill
COVID-19--Impact-of-Corporate-insolvency-&-governance-bill

Highlights

  • Many of the measures in the Bill will need secondary legislation before they come into force
  • Nothing will change until that legislation is introduced
  • Introduction of temporary easements on filing requirements and Annual General Meetings (AGMs)
  • Introduction of new corporate restructuring tools to the insolvency regime to give companies the time they need to maximize their chance of survival
  • Temporary suspend parts of insolvency law to support directors during this difficult time

On Wednesday 20 May, the Department for Business, Energy andIndustrial Strategy (BEIS) introduced the new Corporate Insolvency and Governance Bill and it will now make its way through Parliament. Many of the measures in the Bill will need secondary legislation before they come into force, and this will be introduced in due course.

Note: Nothing will change until that legislation is introduced.

The measures in this Bill will relieve the burden on businesses during the coronavirus (COVID-19) outbreak and allow them to focus all their efforts on continuing to operate.

Relaxation on filing requirements and AGMs

Temporary relaxation on filing requirements and AGMs will include more flexibility around when and how AGMs are held, and extensions to deadlines for:

  • confirmation statements
  • accounts
  • registrations of charges (mortgage)
  • event-driven filings, such as a change to your company’s directors or people with significant control

What you need to do

If you already know that you will not be able to meet your accounts filing deadline, you can apply for a 3 month extension. Those citing issues around COVID-19 will automatically be granted an extension.

You will not be granted an extension to your accounts filing deadline at this time unless you apply.

Note:For all other filings, your deadlines will stay the same at this time.

For any assistance, contact us or call us at 020 3900 3500.