The (the "Act") obtained Royal Assent on 25 June 2020 and came into effect on 26 June 2020.

The Act is intended to offer protection to businesses that are having difficulties trading due to the current economic downturn and beyond, and generally marks a shift towards a more debtor-friendly regime. The provisions will be relevant to occupational pension schemes.

The Corporate Insolvency and Governance Act 2020 (the "Act") obtained Royal Assent on 25 June 2020 and came into effect on 26 June 2020.

The Act is intended to offer protection to businesses that are having difficulties trading due to the current economic downturn and beyond, and generally marks a shift towards a more debtor-friendly regime. The provisions will be relevant to occupational pension schemes.

Final amendments to the Corporate Insolvency and Governance Bill were approved by the House of Lords on 23 June 2020, and by the House of Commons on 25 June 2020. The Act came into force on 26 June 2020, however certain provisions have retrospective effect from 1 March 2020. It will have a significant impact on defined benefit pension schemes, and the ability of pension scheme trustees to take action if the scheme's employer is struggling. This legal update explores the Act's key provisions through a pensions lens.

Creditors and Coronavirus

As the scale of the economic impact on businesses and individuals of the Coronavirus pandemic becomes apparent, the Scottish and UK governments have sought to protect companies and individuals from creditor led insolvency events.

Bankruptcy:

In previous blogs, we’ve discussed the temporary changes to the law being brought about by the UK Government’s Corporate Insolvency and Governance Bill. The Bill is set to strip Landlords of some of the tools available to recover arrears from their tenants. It will render statutory demands served between 1 March to 30 June 2020 ineffective, while making it near impossible for landlords to liquidate tenants (by winding them up) if they have been financially affected by COVID-19.

In previous blogs, we’ve discussed the temporary changes to the law being brought about by the UK Government’s Corporate Insolvency and Governance Bill. The Bill is set to strip Landlords of some of the tools available to recover arrears from their tenants. It will render statutory demands served between 1 March to 30 June 2020 ineffective, while making it near impossible for landlords to liquidate tenants (by winding them up) if they have been financially affected by COVID-19.

The Corporate Insolvency and Governance Bill 2020 (the Bill) was published on 20 May 2020. Following completion of the Bill's third reading in the House of Commons, it is now proceeding through the House of Lords.

The (the Bill) was published on 20 May 2020. Following completion of the Bill's third reading in the House of Commons, it is now proceeding through the House of Lords.

he Corporate Insolvency and Governance Bill 2020 (the Bill) was published on 20 May 2020. Following completion of the Bill's third reading in the House of Commons, it is now proceeding through the House of Lords.

In a decision released on March 11, 2020, the Ontario Court of Appeal provided reassurance for those in the construction industry of the effectiveness of section 9(1) of the Construction Act, RSO c C.30 (“CA”) in insolvency proceedings. This decision did not overturn the previous decision rendered in Re Veltri Metal Products Co (2005), 48 CLR (3d) 161 (Ont CA) (“Veltri”); rather, the Court of Appeal distinguished the two cases on the facts.

Whether or not the impact of the COVID-19 crisis on a party’s ability to perform its obligations will constitute a force majeure event enabling them to claim relief depends on the terms of the contract as applied to the precise circumstances. Where there is no force majeure clause, a party may in rare circumstances be able to invoke the doctrine of frustration.