The Corporate Insolvency & Governance Act aims to help companies survive the coronavirus fall-out. Photo © Andrianocz | Dreamstime.com
The Corporate Insolvency & Governance Act 2020, which received Royal Assent on 25 June, came into force on 26 June.
The Act introduces a moratorium to give companies breathing space from their creditors while they seek a rescue.
It introduces a new restructuring plan sanctioned by a court that will bind creditors to the plan, even if they don't agree with it.
A restructuring plan does not take effect until a copy of the court order has been delivered to Companies House. It will then be registered against the company.
Directors will still need to meet their filing obligations with Companies House and late filing penalties will be applied if accounts are filed late.
However, the Act gives companies and other types of businesses registered at Companies House more time to file accounts. Filing deadlines will be updated automatically by Companies House for eligible businesses. You do not need to apply for an extension.
Companies with a moratorium will have a 'Monitor' appointed to oversee the moratorium.
|Company type||Company has not had an extension or shortened their accounting reference period|
|Public limited companies (PLCs)*||Filing deadline extended from 6 to 9 months|
|Private company||Filing deadline extended from 9 to 12 months|
|LLP||Filing deadline extended from 9 to 12 months|
|Overseas companies who are required to prepare and disclose accounts under parent law||Filing deadline extended from 3 to 6 months|
|SEs (Societas Europaeas)*||Filing deadline extended from 6 to 9 months|