Under normal circumstances, directors have a strict duty to cease trading if their company is facing insolvency and may face financial or legal liabilities if they seek finance instead of doing so. In June, the government introduced emergency coronavirus legislation to suspend the threat of liability for such ‘wrongful trading’.
This protection runs out on 30 September, and the IoD said that failure to extend the measure could lead to ‘entirely preventable company collapses’.
The institute argued that the measures should be extended to the end of the year, to aid the economic recovery from the pandemic and to safeguard jobs.
Roger Barker, the IoDs director of policy and corporate governance, said: The recovery has begun, but busines…
Read the full article at: https://www.accountancydaily.co/call-extend-covid-19-insolvency-protection
