Published on April 27, 2020
The Suspension of Wrongful Trading Provisions and Directors’ Continuing Liabilities and Duties

Amongst a set of far-reaching new measures designed to ease the pressures and impact of the COVID-19 pandemic on UK businesses, the UK Government recently announced its intention to temporarily suspend provisions relating to wrongful trading by directors of UK companies.

The measures, implemented by way of amendment to the UK Insolvency Act 1986, are intended to allow company directors to keep trading without the threat of personal liability while options to rescue or restructure struggling businesses are explored.

The stated purpose of the measures is to “give company directors greater confidence to use their best endeavours to continue to trade during this pandemic emergency, without the threat of personal liability should the company ultimately fall into insolvency.”

This article takes a closer look at the measures, as well as the risks and liabilities which remain for directors nonetheless.

To download the article, please click the link below. 

The article was co-authored with Saaman Pourghadiri of Outer Temple Chambers.


Nov 29, 2023
Oliver Rule joins Enyo Law from Allen & Overy
We are delighted to welcome Oliver Rule, who joins the firm as a partner. Oliver has almost two decades of...
Nov 22, 2023
The wide remit of a section 423 Insolvency Act claim
It is well known that courts are extremely reluctant to “pierce the corporate veil” and disregard the fundamental principle of...
Nov 15, 2023
High Court reiterates need to prove reliance on implied misrepresentations
The High Court has dismissed claims against Credit Suisse relating to its sale of a collateralised debt obligation (“CDO”) “as...
Oct 17, 2023
Andy McGregor joins Enyo Law from Allen & Overy
Enyo Law further strengthens its highly-ranked litigation practice with the appointment of Andy McGregor as a partner in the London...