Lexology Pro Compliancetakes a look at some of the most informative articles published on Lexology this fortnight for compliance teams to stay up-to-date, including key guidance from regulators around the world and practical tips to help businesses adapt to a new normal.

The Corporate Insolvency and Governance Bill (the "Bill") was published on 20 May 2020. The Bill introduces a new type of ‘moratorium’ whereby eligible companies can take 40 days to restructure without the threat of enforcement action from creditors.

The Corporate Insolvency and Governance Bill 2019-21 (the “Bill”) published on 20 May 2020, had its third reading on 3 June 2020. This briefing focuses on the proposed changes to shareholder meetings and Companies House filing deadlines. For the purposes of this briefing, the “Relevant Period” began on 26 March 2020 and ends on 30 September 2020.

1. Flexibility for holding shareholder’s meetings.

In this week’s update: the test for an LLP member to bring a derivative claim, updated guidance on company meetings, the court sanctions a takeover despite not all beneficial owners being able to vote on the scheme and a few other items.

Covid-19 is affecting the way people conduct their business, retain their staff, engage with clients, comply with regulations and the list goes on. Read our thoughts on these issues and many others on our dedicated Covid-19 page.

The restructuring & insolvency Q&A series provides a comprehensive overview of some of the key points of law and practice of the regulatory environment in Luxembourg. Today's chapter focuses on cross-border / groups.

Can foreign debtors avail of the restructuring and insolvency regime in your jurisdiction?

1. On 4 June 2020 the Chancellor handed down his decision in Re Akkurate Ltd (in Liquidation) [2020] EWHC 1433 (Ch). In doing so he brought to an end (at least for now) an ongoing debate as to whether s236 Insolvency Act 1986 (“IA 1986”) has extraterritorial effect, concluding that he was bound by precedent to conclude that it does not but carving out an exception where the Council Regulation (EC) No 1346/2000 on Insolvency Proceedings applies (“the Insolvency Regulation”). 

Permanent Reforms

Moratorium: a new stand-alone moratorium to provide businesses with an initial 20-business-day stay from creditor action.

Different countries frame the exact description of the role of directors of a company in different terms. One feature is common to all – the obligation not to continue trading if a company is insolvent. Again, the detailed implications of doing so vary from one jurisdiction to another. However, this obligation not to continue wrongful trading is at the heart of trust in a market-based economic system.

On 26 May 2020, the Dutch Lower House adopted the long-awaited legislative proposal regarding the Dutch scheme (Wet Homologatie Onderhandsakkoord (WHOA)).

This is an important step towards the entry into force of the proposal. The Senate still needs to approve, but this can usually be done much quicker and less debate is expected.

The Senate will discuss the procedure of the treatment on 2 June 2020. Once the Senate has voted and it becomes clear when the WHOA comes into force, we will post a new update.