The Corporate Insolvency and Governance Act has been raced through Parliament on an emergency basis in response to the COVID-19 pandemic, and came into force on 26 June 2020. It proposes to bring about not only temporary relief to businesses but permanent and substantive changes to the law of insolvency, including a new moratorium process and a new role for insolvency practitioners – that of a “monitor”.
Whilst the Government guidance suggests that monitors will have some immunity from compensation claims, the Act does not in fact have that effect, and insolvency practitioners acting as monitors will be taking on a range of duties and responsibilities, and with them potential risks and liabilities.
This article focuses on the monitoring role of insolvency practitioners in the new freestanding moratorium process and its associated risks.
To download the article, please click the link below.
The article was co-authored with Ian Wilson QC of 3 Verulam Buildings.