Coronavirus: Changes to insolvency law

News article

New measures introduced by the Corporate Insolvency and Governance Act

The Corporate Insolvency and Governance Act 2020 came into force on 26 June 2020 and introduces permanent and temporary changes to insolvency and company law in Northern Ireland. The measures introduced by the act will relieve the burden on businesses during the coronavirus (COVID-19) outbreak and allow them to focus all their efforts on continuing to operate.

Companies and other types of business registered at Companies House will get more time to file accounts. If your company is eligible, Companies House will update your filing deadline automatically. You do not need to apply for an extension.

There are changes for public companies with a filing deadline between 26 March 2020 and 29 September 2020. See guidance on changes for public companies.

The legislation introduces new corporate restructuring tools to the insolvency and restructuring regime to give companies the breathing space and tools required to maximise their chance of survival. The changes also temporarily suspend parts of insolvency law to support directors to continue trading through the emergency without the threat of personal liability for wrongful trading and to protect companies from creditor action.

For full details see Department for the Economy’s (DfE) guidance on the Corporate Insolvency and Governance Act 2020.

First published 29 June 2020