Government announces changes to insolvency rules...
It was positive to see Government’s announcement regarding changes to insolvency rules. Again, we will wait to see how the announcement manifests itself in formal legislation and practical application.
In itself, the relaxation of wrongful trading provisions is sensible. However, directors should be aware that this does not give a “free pass” to merely continue trading if the business is insolvent. Director disqualification and fraudulent trading provisions are anticipated to remain unaltered.
If you are trading whilst insolvent (on either a cash or balance sheet basis) and concerned about your responsibilities, please do not hesitate to get in touch.