Details on suspension of wrongful trading provisions
Suspension of wrongful trading provisions
The government has recently announced that they will suspend the wrongful trading provisions of the Insolvency Act 1986 (“the Act”) for an initial period of three months, retrospectively coming into force from 1 March 2020. This temporary suspension will allow directors breathing space in order to continue to trade and preserve their Company’s positions without the threat of personal ramifications for any decisions they make over this period. Given the current extraordinary event spanning the world over, the government is looking to take steps to alleviate some concern amongst the business community to keep as much continuity in place at a time when we all working in an unchartered territory.