Posts Tagged ‘Company director’
Avoiding misfeasance claims in 2021
As the UK struggles to revive its debilitated economy, some directors of insolvent companies will find it difficult to avoid misfeasance claims in 2021 and beyond. According to section 212 of the Insolvency Act 1986, misfeasance occurs when a director or ex-director retains, misappropriates, misapplies, or becomes accountable for any of the company’s property or…
Read MoreCorporate Insolvency and Governance Act Explained
In the weeks ahead, the Government will attempt to stimulate Britain’s flagging economy with the introduction of the Corporate Insolvency and Governance Act. The Act, which recently came into law, proposes an extensive shake-up of the insolvency regime. But exactly how will these changes affect business owners? Well, that depends if your primary focus is:…
Read MorePost-Covid-19 termination clauses
One of the most controversial proposals in the Corporate Insolvency and Governance Act is the suspension of termination clauses. Medium and large creditors are prevented from using the terms of their contract to stop the supply of ‘essential’ goods and services to a company in a formal insolvency procedure. However, the suspension of termination clauses…
Read MorePros and cons of the moratorium procedure
Under the provisions of the Corporate Insolvency and Governance Act 2020, struggling companies can be placed into a new statutory insolvency procedure. But what are the pros and cons of the moratorium? The moratorium provides up to 40 business days of protection from creditors. This should be ample time to secure additional investment and remodel…
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