Business Secretary announces changes to insolvency rules28 March 2020
UK Business Secretary Alok Sharma has announced changes to insolvency laws to help businesses “emerge intact the other side of the Covid-19 pandemic.”
The new rules will allow companies undergoing restructuring to continue to get access to supplies and raw materials.
“These measures will give those firms extra time and space to weather the storm and be ready when the crisis ends, while ensuring creditors get the best return possible in the circumstances,” he said.
And, he said, there would be a temporary suspension of “wrongful trading” rules for company directors to remove the threat of personal liability during the pandemic, which will apply retrospectively from 1 March.