On 26 November 2020, The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020 (the “Regulations”) came into force.
The government has once again suspended wrongful trading, this time until 30 April 2020. The government had previously suspended wrongful trading for the period between 1 March 2020 and 30 September 2020. To the surprise of many commentators in the insolvency profession the government let the first suspension lapse at the end of September. Perhaps because of the "second wave" of Covid-19 the government has seen it fit to revive the suspension.
The Security Interests (Jersey) Law (SIJL) 2012 came into force on 2 January 2014, changing the way in which security is created, perfected and enforced over Jersey intangible movable property. This article deals with the enforcement of security interests under the SIJL 2012.
1 Foreword Simon Croall QC 2 Using Force Majeure Clauses in Relation to Inability to Pay: A Forlorn Hope?
This guide provides directors of UK incorporated companies with a general overview of the statutory and other duties and obligations which should be complied with in that role. We also offer practical guidance on safeguarding directors from personal liability and on considerations should insolvency of a director’s company become a concern.
When company directors breach the law they can be personally liable for the company’s debts and regulatory action can be taken against them.
In Australia, the agency responsible for enforcing such breaches is the Australian Securities and Investments Commission (ASIC).
ASIC outlines the key liabilities company directors need to be aware of when things go wrong.
Speed read: The wrongful trading suspension ended on 30 September 2020 and it is important that company directors keep in mind the offence in section 214 of the Insolvency Act 1986. Although it is a civil contravention, there could be implications for the anti-money laundering regime.
Following Treasury’s announcement on 24 September 2020 that it will introduce a suite of reforms to Australia’s insolvency framework, the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 (Cth) (Draft Bill) was released for public consultation between 7 and 12 October 2020, providing much needed clarity as to the practical effect of the insolvency reforms, which are expected to commence on 1 January 2021.
This article is produced by CMS Holborn Asia, a Formal Law Alliance between CMS Singapore and Holborn Law LLC.
Ongoing uncertainties about the COVID-19 pandemic, coupled with the looming deadline of Brexit, mean businesses and owners are in for a tough ride over the next few months, possibly much longer if the UK continues to face restrictions.