COVID-19- Changes announced to UK Insolvency Law and for AGMs
Updated: Apr 24
As the COVID-19 pandemic continues to spread across the world, individuals, families and businesses are facing unanticipated urgent and strategic challenges. Jobs are being lost and businesses are being closed or are facing closure. Insolvency is on the horizon for several businesses and companies.
Insolvency can have a major impact upon businesses, business owners, directors, shareholders, creditors, their families and lenders. Governments all over the world have announced measures to alleviate the health, people and cashflow difficulties that have arisen as a result of the pandemic. On 28 March 2020, the Secretary of State for Business, Energy and Industrial Strategy (BEIS) announced wide-sweeping measures including a financial package of at least £330 billion to help businesses companies and businesses facing significant funding and operational difficulties in the current pandemic. Please click on here. These measures will have a major impact on the position of creditors and their rights to seek repayment of overdue indebtedness, etc.
The Government has said that it will bring forward new legislation to amend current U.K. insolvency law to bring these measures into effect. This will ensure that firms are given time to weather the current situation whilst ensuring that creditors are protected.
In summary, there appears to be an ever-increasing offer of rescue and recovery methods which can be of benefit to businesses and their directors.
We can also refer you to qualified insolvency practitioners who can navigate you through these difficult times. In these challenging times it is essential that you have legal advisers that you can trust to guide you through you through tough times.
1.Restructuring and Insolvency
We help clients to:
restructure in order to continue trading;
continue to carry on in business;
resolve commercial and contractual disputes by liaising with your suppliers and other third parties;
resolve director and or shareholder disputes;
recover debts owed when companies default;
advise directors and ex-directors on personal liabilities;
defend and bring claims against directors; and
assist creditors seeking to obtain payment through the insolvency process.
We can also advise on Administration and Liquidation; assist you with placing companies into administration; prepare, issue and defend winding up petitions; serve statutory demands and act for directors dealing with claims against them following a company insolvency. We can also issue injunctions to prevent the issue or advertisement of a winding up petition.
We are taking calls daily from clients in these uncertain times.
Specialist Commercial Solicitors
If you would like to talk through any of the issues that we raised and the consequences for your business or if you have any other queries please call our commercial property solicitors on 01234 938089 for a free 30 minute discussion or email us firstname.lastname@example.org and a member of our team will get in touch.
Please note that this guide has been prepared for directors and owners of businesses for information purposes only, in particular to provide a summary of key government guidance and initiatives provided to support small businesses in light of the COVID-19 pandemic. The guide does not constitute legal advice and should not be relied upon, particularly as government guidance and initiatives are updated and amended on a daily basis.
For specific queries and for advice on your particular circumstances , please contact our commercial solicitors for advice.