The outbreak of COVID-19 and the ‘lockdown’ measures implemented by the Government to prevent the spread of the virus have impacted the majority of UK businesses who have struggled as a result.
On Saturday 28 March 2020, the Government announced that it intends to amend UK Insolvency law to suspend the offence of wrongful trading by directors of UK companies.
Under the current rules, directors of companies could face personal liability for the debts of the company, if they allowed the company to continue to trade whilst the company was unable to pay its creditors i.e. insolvent. The relaxation of the rules and amendments proposed by the Government would, in turn, allow companies to continue trading to allow them to explore the options to rescue the company.
Given the risks involved, it is important to seek legal advice at an early stage. The Government is continuously seeking to implement measures to ensure your business does not go under.
If your business is facing uncertain times, we are here to help.
We will advise you on your options to help you make the best possible decision for your company. Whilst we have taken measures to protect our staff and the public, we are still operating during business hours and have implemented procedures to be able to do so.
Should you wish to arrange a consultation with one of our business specialists, please call us on 020 3588 3500.