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COVID-19 Update: Corporate Insolvency and Governance Bill Introduced

03 June 2020

On 20th May the Department for Business, Energy and Industrial Strategy (BEIS) introduced the Corporate Insolvency and Governance Bill. This, along with previously introduced measures, aims to relieve the burden on companies during the COVID-19 outbreak so that they can continue to operate.

What will the Bill do?

Essentially, the bill will:

– introduce temporary easements on filing requirements and Annual
General Meetings (AGMs)

– introduce new corporate restructuring tools to the insolvency regime
to give companies the time they need to maximise their chance of
survival

– temporarily suspend parts of insolvency law to support directors
during this difficult time

The temporary easements will increase flexibility on when AGMs are held and provide extensions for the following:

– confirmation statements

– accounts

– registrations of charges (mortgage)

– event-driven filings

It should be noted that the Bill must now go through Parliament. Many of the measures in the Bill require secondary legislation before coming into force. Until this legislation is introduced things will remain as they are. For more detailed information on the contents of the Bill see gov.uk.

Current Position on COVID-19 Extensions

Currently it is possible to apply for a 3 month extension to the deadline for the filing of accounts. Companies citing issues around COVID-19 will automatically be granted an extension but an application must be made before the deadline.

Deadlines remain unchanged on all other filing deadlines.

"We have worked with Des and the team at The Company Shop for 10 Years ...

Brendan Corr, Corr & Corr Chartered Accountants

 
 

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