Ministers in talks to extend insolvency measures

UK ministers are believed to be in talks to extend a ban on statutory demands being used as the basis for winding-up petitions. 

According to Sky News, the ban, which has been in place since April, was implemented as a measure of the new Corporate Insolvency and Governance Act and is set to end at the end of September. 

The outlet also reported that the move is expected to be “finalised within a matter of days”, with sources saying that an extension was not yet guaranteed but was “overwhelmingly likely”.

Roger Barker, the director of policy and corporate governance for the Institute of Directors, said: ”Without the extension to these measures, we could see some entirely preventable company collapses, putting our economic recovery and jobs at risk.

He added: “Directors must be in a position to see their organisations through the crisis, they shouldn’t be penalised for acting responsibly amid unprecedented circumstances.”