The Business Secretary, Alok Sharma MP, announced on the 28th March 2020 that the UK will be making changes to enable UK companies undergoing a rescue or restructuring to continue trading, helping them avoid insolvency. We welcome the UK governments pragmatic approach to assist businesses through this challenging period.
The changes outlined are to focus on enabling directors of UK companies to purchase supplies while attempting a rescue. The announcement is to temporarily suspend wrongful trading provisions retrospectively from the 1 March 2020 for three months for company directors so they can keep their businesses going without the threat of personal liability.
Alok Sharma MP said: “Today’s measures will also reduce the burden on business, giving bosses much-needed breathing space to keep their workers employed and their companies going.”
Our business communities responses to COVID-19 are driving fast-changing and fluid responses. We welcome all the support the government can bring into play to support business survival. If you are a business director and maybe impacted these changes we encourage you to seek professional advice.
If you would like to discuss your concerns please contact us today.