CIGA Update

The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Early Termination of Certain Temporary Provisions) Regulations 2020 came into force on 1 October 2020.

The following regulations are extended
1. The temporary exclusion for small suppliers from the provisions of s233B IA 1986 (Protection of supplies of goods and services) (inserted by s14 CIGA) is extended to 30 March 2021;

2. The temporary prohibitions on winding up petitions based on statutory demands and the restrictions on winding up petitions and orders which are set out in Sched 10 to CIGA are extended to 31 December 2020;
3. The temporary provisions in Sched 14 to CIGA relating to the conduct of meetings of companies and other corporate bodies are extended to 30 December 2020;
4. Other temporary provisions in Sched 4 CIGA relating to the moratorium procedure continue to have effect pursuant to the Extension Regulations, for the further period to 30 March 2021, namely:

  • By disapplying sA3 (1)(a) IA 1986 (as inserted by s1(1) CIGA) for the relevant period, a company subject to an outstanding winding up petition may obtain a moratorium by filing or lodging documents at court;
  • During the relevant period, only an overseas company may obtain a moratorium by making a court application under sA4 IA 1986 (added by s1(1) CIGA) (Obtaining a moratorium for company subject to winding up petition)
  • During the relevant period, a company is not ineligible for filing out-of-court or making an application to court for a moratorium, by reason of a moratorium having been in force or the company being subject to a CVA or administration at any time during the period of 12 months ending with the filing date.

Posted 10:33 AM | Permalink