Wrongful Trading Liability Suspension – Renewed 26 November 2020
8th January 2021In March 2020 the Government temporarily suspended wrongful trading provisions until 30 September 2020.
The purpose of this measure had been to ensure that company directors could continue to operate during Covid-19 without worrying about becoming personally liable for wrongful trading.
On 26 November 2020, following the 2nd lock down, new legislation came into force reviving the suspension of wrongful trading provisions from 26 November 2020 until 30 April 2021.
Without this suspension, directors could become personally liable if there was an insolvency where the creditors believed the directors hadn’t carried out business in the best interests of the creditors.
Disclaimer - All information in this post was correct at time of writing.
