UK suspends wrongful trading insolvency laws - UK ditches wrongful trading insolvency laws
The UK’s wrongful trading law will be suspended to allow businesses to “weather the storm” of the coronavirus pandemic, business secretary Alok Sharma has announced. The change, backdated to apply from 1 March 2020, will allow directors of companies to pay staff and suppliers even if the company is facing insolvency. Other measures include a temporary moratorium for businesses undergoing a restructuring process, during which time they cannot be put into administration by creditors and will continue to be able to access raw materials, the Financial Times reports.Link to article
Category: Insolvency » Restructuring. Keyword(s): Wrongful trading; Employment. Area(s) of law: Employment; Litigation; Corporate and Commercial Law.
Source: Scottish Legal News.