The Government announced that it would implement changes to statute to ease the burden on limited companies during the current virus crisis.
One of these will be to suspend for 3 months from 1st March 2020, directors liability for wrongful trading should the company subsequently fail.
We touched on directors responsibilities currently in force in our article here
It is hoped that the changes will enable directors to continue to place orders for essential supplies etc to enable the company to continue to trade during the current crisis without fear of personal liability.
Another welcome measure is a moratorium from enforcement action by creditors while a rescue plan is formulated and considered.
The details of the full plan have yet to be provided but it is hoped that suppliers will be given some safeguards during this time.
