The Government has announced changes to the UK’s bankruptcy laws as part of a move to protect businesses unable to pay their debts as a result of the Coronavirus outbreak.
Business secretary Alok Sharma appeared before the nation on Saturday 28 March to outline new rules which will give a temporary moratorium for companies which are going through restructuring.
During that time those businesses cannot be placed in administration and will be allowed access to supplies and raw materials.
There will also be a suspension, again temporary, of wrongful trading provisions for company directors. This will apply retrospectively from 1 March and will remove the threat of personal liability during the pandemic.
It is not yet clear when these new rules will come into effect, though the Government says it intends to do so at ‘the earliest opportunity.’
Finally it has been confirmed that legislation will also be introduced to permit AGMs to be postponed or held online or by phone, as necessitated by the social distancing currently in place.
Mr Sharma’s entire address to the nation can be watched on Youtube.
