Included in this update: Government extends temporary COVID-19 measures in CIGA 2020 and more...

COVID-19

CIGA 2020 extensions in force

WELCOME TO OUR LATEST EDITION OF CORPORATE FINANCE NEWS. READ ON FOR UPDATES RELATING TO COVID-19; CORPORATE GOVERNANCE; EQUITY CAPITAL MARKETS; CLIMATE CHANGE AND MORE...

COVID-19: LEGAL & REGULATORY CHANGES

CORPORATE INSOLVENCY AND GOVERNANCE ACT 2020 IN FORCE

Included in this update: Corporate Insolvency and Governance Bill introduced to Parliament; FRC updates guidance on corporate governance and reporting and more...

Corporate Insolvency and Governance Bill introduced to Parliament

This is the second litigation involving the furlough scheme in the insolvency context, following on from Re Carluccio's (in administration). Please refer to our note on Carluccio's for background reading on how the furlough scheme weaves into insolvency law.

Issue

In the first litigation involving the Furlough scheme, the court in Re Carluccio's (in administration) ruled on how the administrators can lawfully give effect to furlough arrangements with the employees who have agreed to the variation of their employment contract.

Read on for our analysis of the case which gives an interesting insight into how the courts in the future might interpret the furlough scheme.

1. Background

Carluccio’s in administration

Where a company brings a claim against its directors for losses caused by their wrongdoing, the Supreme Court has confirmed the established position that directors cannot escape the claim by arguing that their actions are attributed to the company itself on the basis that the directors were acting as the agents of the company.