The government has announced it intends to make temporary amendments to the effects of corporate insolvency and governance legislation for an additional year.
The government laid the regulations out on 11 February 2021 in Parliament ahead of the power expiring on 30 April 2021.
Additionally, the government has also announced that companies and other qualifying bodies with obligations to hold AGMs will continue to have the flexibility to hold these meetings virtually until 30 March 2021.
Measures put in place to protect businesses from insolvency will be extended to continue giving them “much-needed breathing space” during the Covid-19 pandemic.
However, small suppliers will remain exempted from the obligation to supply until 30 March 2021 so that they can to protect their business if necessary. The modifications to the new moratorium procedure, which relax the entry requirements to it, will also be extended until 30 March 2021.
A company may enter into a moratorium if they have been subject to an insolvency procedure in the previous 12 months. Measures will also ease access for companies subject to a winding up petition. The temporary moratorium rules will also be extended to 30 March 2022.
Lord Callanan, business minister, said: “It is vital that we continue to deliver certainty to businesses through this challenging time, which is why we are now extending these important and necessary measures to protect companies from insolvency.
“Through this measure, we want to ensure businesses are able to not only come through this testing period, but also to plan, adapt and build back better.”