Changes to the UK insolvency rules will help to protect businesses struggling financially through the coronavirus crisis.
The government has announced the suspension of wrongful trading laws to protect directors during the coronavirus pandemic. The move will allow directors of companies to pay staff and suppliers even if there are fears the company could become insolvent and give businesses more time to pay off debts while continuing to trade.
Wrongful trading was introduced in 1986 and makes it an offence for a director to continue to trade if they know their business is unable to avoid going into liquidation.
Introduced retrospectively from 1 March for three months, company directors will now be able to keep their businesses going without the threat of personal liability.
