Worcestershire businesses given lifeline by insolvency schem

Worcestershire businesses given lifeline by insolvency scheme extension


ADVICE: Sam Pedley
THE extension of temporary measures to protect businesses and their directors during the coronavirus pandemic has been welcomed by a county legal expert.
Sam Pedley, a partner at Worcestershire law firm mfg Solicitors, said businesses had been given vital “breathing space” with the extension of two insolvency measures until June 30, 2021.
Measures brought in last summer as part of the UK Corporate Insolvency and Governance Act 2020 provided temporary protections during the coronavirus pandemic.
A suspension of personal liability for “wrongful trading” has protected directors from being prosecuted if they fail to act in the best interests of their company’s creditors, once the business becomes insolvent.

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