- The Corporate Governance and Insolvency Act (CGIA) came into force on 26 June 2020, with the intention of providing businesses in financial difficulty with flexibility and breathing space and additional assistance (such as the protection of supplies) in order to maximise their chances of survival.
- It contains a number of provisions which will impact on construction contracts and professional appointments, in particular on the rights of a supplier under a contract for the supply of goods and services (e.g.
Does an arbitration agreement protect a
debtor from the threat of liquidation?
27 July 2020
Termination for insolvency: a clause for concern?
Perhaps influenced by the fall of some significant UK brands in recent years, the actions of suppliers of insolvent firms have long been on the radar of the Government, initially through the introduction of The Insolvency (Protection of Essential Supplies) Order 2015 and most recently through the consultation and consideration relating to the Corporate Insolvency and Governance Act 2020, which came into force on 26 June 2020.
In several Commonwealth jurisdictions, the corporate legislation allows creditors to petition a court to order the winding up of a debtor in circumstances where that debtor is unable to pay its debts as they fall due. Such legislation generally presumes that the debtor is insolvent if it has failed to comply with a statutory notice requiring the debtor to pay a certain debt within a given period of time (a statutory demand).
Hogan Lovells Publications | 06 July 2020
Contracts and Insolvency – a transformational change
New statutory provisions retrospectively change the way many existing and future contracts work. Businesses urgently need to look afresh not just at supply arrangements but also many other significant transactions of which the supply of goods or services forms part.
Questions and answers on the effect of the part A1 moratorium to be introduced by the Corporate Insolvency and Governance Act 2020 from a Lender's perspective.
The Corporate Insolvency and Governance Act 2020 (CIGA) was enacted on 26 June 2020 and includes measures both as a response to COVID-19, which apply temporarily, and measures which apply permanently, part of a long-planned package of insolvency reform measures.
Real Estate Quarterly
Summer 2020
Contents
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The Corporate Insolvency and Governance Act 2020 (Act) received Royal Assent on 25 June 2020. The majority of its provisions commenced on 26 June 2020, with the exception of the temporary measures which have retrospective effect from 1 March 2020.
1. TEMPORARY PROVISIONS
WHAT HAS CHANGED?
The Act outlines certain insolvency law reforms in response to the COVID-19 crisis, including a temporary suspension of wrongful trading provisions for company directors. The suspension applies retrospectively from 1 March 2020 until 30 September 2020, and aims to encourage directors to continue to trade during the pandemic.
This change will not affect the directors’ duties regime. Directors must continue to comply with their duties, in particular those owed to the company's creditors where the company is, or is likely to be, insolvent.
Die anstehende Marktkonsolidierung birgt fusionskontrollrechtliche Herausforderungen
Die COVID-19-Pandemie ist schon lange nicht mehr nur eine Gesundheitskrise, sondern hat sich zu einer globalen Wirtschaftskrise entwickelt, die viele Unternehmen in massive wirtschaftliche Schwierigkeiten bringt. Erwartet wird eine Konsolidierung, bei der finanziell angeschlagene oder insolvente Unternehmen übernommen werden. Auch der Präsident des Bundeskartellamtes, Andreas Mundt, hält eine Übernahmewelle in Folge der Corona-Krise für ein mögliches Szenario.