The Corporate Insolvency and Governance Bill (the “Bill”) was laid before Parliament on 20 May 2020 and represents the most extensive changes in the insolvency landscape since the Enterprise Act came into force in 2003. Many of the proposals were originally consulted on in 2016, but were not progressed in light of Brexit until the COVID-19 crisis led to an urgent need for rapid and responsive reforms. The Bill is expected to come into force in June at the earliest.
The provisions of the Bill contain both:
Unless the Article 50 period is extended yet again, the UK is currently set to leave the EU on 31 October 2019 at 11pm GMT. However, if the Withdrawal Agreement is ratified, the impact of Brexit will, for most purposes, be postponed due to the transition period. This transition period is currently set to end on 31 December 2020. The Withdrawal Agreement provides that during transition, the UK would continue to be treated as if it were still an EU member for the purposes of a range of directly application EU legislation which is core to the smooth running of financial transactions.
This page was updated on 8 January 2021.
The Department for Business, Energy and Industrial Strategy published the Corporate Insolvency and Governance Bill yesterday (20 May 2020). The Bill, when enacted, represents the most significant amendment to the UK’s insolvency laws since the Enterprise Act 2002 introduced the administration regime.
I have obviously been a good boy this year because my gift from the Insolvency Service has arrived - the November 2020 Insolvency statistics. And like any properly brought up child, I decided to sneak a peek at my present before Christmas Day.
What the numbers show us is a continuation of the trend that the previous figures disclosed - corporate insolvencies remain markedly lower than the equivalent period last year. In Scotland in particular this is driven by a massive reduction in the number of compulsory liquidations this year (Nov 2019 - 56; Nov 2020 - 13).
Brexit’s transition process will pose a number of challenges for businesses. We have created this tracking tool to help our clients manage and avoid issues as new developments take shape. Over the coming months, we will continue updating this tool to include additional information and topics that come to light. By tracking developments and explaining how they impact businesses like yours, we will help you assess your position and determine your priorities as we move to the end of the transition period.
The Irish Government continues to prepare for the consequences of the UK withdrawal from the EU through the enactment of recent legislation.
Matthew Czyzyk, Ropes & Gray
This is an extract from the 2020 edition of GRR's the Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
In summary
We are delighted to share with you our Financial Institutions Horizons 2021, which provides a snapshot of key legal topics and market trends across the globe, shaping the future of the financial institutions market.
Ken Baird, Mark Liscio, Samantha Braunstein, Katharina Crinson and Kevin Connolly, Freshfields Bruckhaus Deringer
This is an extract from the 2021 edition of GRR's The Americas Restructuring Review. The whole publication is available here.
In summary