Directors stay in control under new 2020 Insolvency Laws

The 20 day Moratorium process under the 2020 Corporate Insolvency and Governance Act, CIGA 2020, protects the company from new legal recovery actions by creditors.

It can easily be extended for an extra 20 days.

It leaves the board in control, subject to an independent Monitor.

Previously such protection required passing control to an administrator or liquidator.

CIGA 2020 also introduced a relaxation, until 30 September, of Wrongful Trading and of actions made difficult by covid-19, such as document filing deadlines and shareholder meetings.

CIGA 2020 since extended to 31 December 2020, except for Wrongful Trading.

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