Amongst a set of far-reaching new measures designed to ease the pressures and impact of the COVID-19 pandemic on UK businesses, the UK Government recently announced its intention to temporarily suspend provisions relating to wrongful trading by directors of UK companies.
The measures, implemented by way of amendment to the UK Insolvency Act 1986, are intended to allow company directors to keep trading without the threat of personal liability while options to rescue or restructure struggling businesses are explored.
The stated purpose of the measures is to "give company directors greater confidence to use their best endeavours to continue to trade during this pandemic emergency, without the threat of personal liability should the company ultimately fall into insolvency."
This article takes a closer look at the measures, as well as the risks and liabilities which remain for directors nonetheless.
To download the article, please click the link below.
The article was co-authored with Saaman Pourghadiri of Outer Temple Chambers.Download PDF