Many companies will have insurance to cover financial losses when their business is interrupted by an unforeseen event. This extends in some cases to illness; we set out below some areas for companies to consider as they grapple with the challenge of coronavirus.
It has become apparent that despite the Government introducing the Coronavirus Job Retention Scheme to ease the pressure many are currently facing as a result of Covid-19, this is no "silver bullet".
On 1st October 2021 a number of the temporary measures introduced by government to protect businesses from the financial effects of the coronavirus pandemic come to an end. These include the end of the furlough scheme and the removal of the temporary restrictions on the issue of winding up petitions.
As we await publication of the Corporate Insolvency and Governance Bill which is expected to include details of the new moratorium procedure and changes to wrongful trading provisions, in a surprise announcement on 23rd April 2020 the government confirmed that the Bill would also include further measures to protect commercial tenants from aggressive debt collection by landlords in respect of rent arrears which have accrued directly as a result of the coronavirus pandemic.
Coronavirus is causing untold difficulties and strain on the life of many businesses. As a result, boards of directors across the country are being asked many unexpected questions. Details of commercial contracts, employment and HR-related issues such as furlough, and the financing of a business are all high on the agenda.
On 16 April Companies House announced that it was temporarily suspending its policy of striking off companies that do not comply with their legal responsibilities, such as filing their accounts on time or failing to register a change in registered address. This is an additional measure to help businesses struggling to cope with the financial and administrative pressures caused by the coronavirus pandemic, coming hot on the heels of the 3-month extension to the filing deadline for accounts.
Even before the Coronavirus outbreak, you may have wondered “Do I need a Will?” or “I’m too young to write a Will”. Although most people writing Wills in the UK are older than 50, you could write a Will from the age of 18.
One of the effects of the coronavirus pandemic is widespread economic volatility with the result that many people have watched their investments tumble in value over the past couple of months. These market swings will have particular resonance for executors dealing with the estates of the recently deceased.
As retail and hospitality businesses continue to struggle in the aftermath of the coronavirus pandemic the implications of Brexit and what may be irreversible changes to our shopping and dining habits, it seems inevitable that we will see many more CVAs in this sector.
The current lockdown and social distancing measures introduced as a result of the coronavirus pandemic mean that courts are having to adjust to more flexible ways of operating, assisted by greater use of video and teleconferencing technology. Guidance of how this will work in practice for insolvency proceedings has been issued via the Temporary Insolvency Practice Direction. These directions will be in force from 6 April to 1 October (unless it is amended or revoked by another insolvency practice direction in the meantime) and apply to all insolvency hearings in the Business and Property Courts. Hearings outside London will be subject to variations as directed by the supervising judge.