Corporate Insolvency and Governance Bill 2020: what you need to know

28 May, 2020

The government has published new legislation that relaxes corporate governance and insolvency law to help organisations under pressure due to the coronavirus pandemic.

Under the Corporate Insolvency and Governance Bill 2020, organisations will be given greater flexibility over things like holding member meetings electronically.

The proposed measures will come into force at the end of June. The bill is limited and will expire on the 30 September, unless it is extended.

In summary the bill allows:

  • Those organisations that have postponed their AGM can extend that postponement up until the end of September.
  • Virtual meetings can be held, even if governing documents do not permit them due to requirements regarding their location, voting or people being in the same place.
  • A 3-month extension can be applied for to submit accounts to Companies House.
  • Changes to insolvency law have been proposed that will enable companies in financial difficulties to continue to trade to avoid them being liquidated.

The bill is set to get its third reading in the House of Commons on the 3rd of June. You can visit the Parliament website for more information and to follow its progress.