Government extends insolvency measures plus business evictions ban extended until March
The government has announced further extensions to insolvency measures as well as a separate announcement that it will extend the temporary ban on business evictions until 31 March 2021.
In summary, the government’s recent announcements* are:
- It intends to reinstate the temporary suspension of the use of statutory demands and winding-up petitions until 31 March 2021
- It intends to reinstate the temporary removal of the threat of personal liability for wrongful trading from directors until 30 April 2021
- Companies and other qualifying bodies with obligations to hold AGMs will continue to have the flexibility to hold these meetings virtually until 31 March 2021. This means that shareholders can continue to examine company papers and vote on important issues remotely
- Business owners affected by the Covid-19 pandemic will be protected from eviction until 31 March 2021.
The latest announcements will be welcome news to many businesses and are understandably based on the government’s current predictions of winding down the furlough scheme, the Covid-19 vaccine roll-out and economic recovery during the early part of next year. The Chancellor has announced there will be no further extensions, but he has said this before so we will wait to see what happens. One thing is certain, the new year will have a completely new set of challenges as well as the legacy that follows from last year and we can all look forward to those and guess what – Brexit’s back!
Before we take a break over Christmas, we want to wish you and your families a safe and Merry Christmas and we hope that 2021 is better for everybody.
Businesses concerned about their financial position should seek professional advice as early as possible. To discuss any corporate recovery or insolvency issues you may have, please contact Jeremy Oddie below.