Legal Update: Extension for exemptions under the Corporate Insolvency and Governance Act 2020.Ryan Marr
Changes have today come into force to extend the limited suspension of provisions and other temporary provisions which were introduced last year under the Corporate Insolvency and Governance Act 2020 (CIGA 2020). Under the new regulations, provisions have been made to:
- extend the temporary suspension in the wrongful trading provisions in section 214 Insolvency Act 1986 (wrongful trading), and section 246ZB (wrongful trading: administration), by extending the relevant period until 30 June 2021;
- extend the relevant period of various temporary provisions under CIGA 2020
- the exclusion for small suppliers from the prohibition on clauses triggering termination of contracts due to insolvency of the customer, to 30 June 2021;
- the relaxation of entry requirements for companies into the Part A1 moratorium procedure and prescribed rules contained in CIGA 2020; and
- the restriction on statutory demands and winding-up petitions.
For more information on the changes under CIGA 2020 and how these affect your business, contact one of our specialist commercial law solicitors on 01782 262031.
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