29 Jul 2020
The new Corporate Insolvency and Governance Bill introduces an unprecedented level of protection to insolvent companies in supply chains. Suppliers will now be obliged to continue providing goods and services despite the fact the recipient is in an insolvency process.
The standard practice in most supply contracts is that a clause will have been agreed allowing the contract to be terminated with immediate effect upon a companys insolvency. This is naturally a desired protection for other parties in the chain, who do not wish to be left holding the baby having expended money or labour with no return. In a momentous move, the Bill invalidates these clauses even in existing contracts. Suppliers will instead be obliged to co…
Read the full article at: https://www.trethowans.com/news/corporate-insolvency-and-governance-bill-impact-of-covid-19-on-supply-chains-part-3-of-3
