The Government introduced a temporary change to the Companies Act earlier this year to ease pressure on company directors facing significant liquidity problems as a result of COVID-19. Company directors who have made use of the safe harbour are encouraged to start preparing for their insolvency related directors’ duties resuming on 30 September. Any company director who has concerns about meeting these duties is encouraged to seek legal advice.
While the safe harbour will no longer be available after 30 September, the Government can re-instate the provision quickly should there be a need to do so.
Other forms of financial support are still available for business in difficulty as a result of COVID-19, such as Business Debt Hibernation (BDH) .The BDH scheme was due to expire on 24 December 2020 but is now going through to 31 October 2021.
Find out what your business may be eligible for: