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Balancing those months of preparation against the rapidly-changing measures that the government is introducing to manage the pandemic is an extremely difficult task. The guidance by BEIS and the FRC provides practical suggestions for companies to consider when looking at how best to achieve this. The main objective of the Act was to amend insolvency and company law in order to support companies through the coronavirus pandemic. The overarching objective of the Act is to provide businesses with the flexibility and breathing space they need to continue trading during the difficult time caused by Covid-19. “We have therefore written twice to the government, with the support of a number of other bodies, asking for an extension to the ‘relevant period’ defined in the Act and we are delighted that they will be acting on this request. (Filing Requirements) (Temporary Modifications) Regulations 2020 (the Filing Regulations) were introduced on 26 June 2020 and they automatically extend the accounts filing deadline for UK companies by three months (to 12 months for private companies and to nine months for public companies) where the filing deadline falls any time from 27 June 2020 to 5 … Wedderburn Financial is authorised and regulated by the Financial Conduct Authority. Continuing to give them much-needed breathing space during the coronavirus … This will have a knock-on impact on the way DB pension schemes are funded and influence the actions trustees can and should take. New legislation has been introduced to relax corporate governance and insolvency law requirements. An extension to 30 December addresses the immediate need and is the maximum extension that the government can give at this time but, given the approach of the main AGM season in Spring 2021 and the lengthy planning involved in these events, we hope that the government will give early consideration to a further extension.”. CIGA enacts important short-term measures in response to the current pandemic while also implementing major long-term structural reforms to the insolvency regime. Those companies will most likely have already taken action to prevent those authorities expiring and dealt with the holding of AGMs through other means. It means greater flexibility… 1) Shareholder meetings due to be held between 26 March to 30 September 2020: Can be held electronically (regardless of the wording in the articles of association). You are now leaving the Shepherd and Wedderburn LLP website and entering the Shepherd and Wedderburn Financial The UK lockdown has coincided with the AGM season and companies required to hold an AGM have had to carefully consider how best to do so whilst ensuring the safety of shareholders and preventing the spread of COVID-19. AGMs are usually an opportunity for all shareholders or members to attend in person should they wish to do so and engage with the company. The Institute’s letters to the government have been supported by the CBI, the City of London Law Society Company Law Committee, the GC100 – the Association of General Counsel and Company Secretaries working in FTSE 100 Companies, the Investment Association and the Quoted Companies Alliance. Further extensions of measures introduced in the Corporate Insolvency and Governance Act (2020) December 15, 2020. EH3 8UL, Condor House The Corporate Insolvency and Governance Bill 2019-2021 was introduced to Parliament. Notice of termination of moratorium. The objective of CIGA is to help UK companies and similar entities to continue to trade during the current worldwide pandemic and to avoid insolvency. Many of the reforms have been effected in the form of amendments to the Insolvency Act 1986 (“IA”). Edinburgh MEETING REQUIREMENTS UNDER THE ACT The Corporate Insolvency and Governance Act 2020 (CIGA or the Act) has introduced new procedures and measures to seek to rescue companies in financial distress as a result of the COVID-19 pandemic and the resulting economic crisis. 29 June 2020. Pursuant to the Act, The Companies etc. The guidance recognises that there may be challenges in supporting shareholder attendance at a virtual meeting but a company could consider, for example, whether the content of the AGM could be shared over the company's website in real time. We have previously discussed that the Corporate Insolvency and Governance Act 2020 (the Act) has introduced a number of measures to protect and support businesses through the COVID 19 pandemic. The Corporate Insolvency and Governance Act 2020 (“the Act”) came into force on 26 June 2020. Shepherd and Wedderburn Financial is a subsidiary of Shepherd and Wedderburn LLP and is a separate legal entity (1) A notice under section A17(4) of the Insolvency Act... 35. However, new regulations, the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Suspension of Liability for Wrongful Trading and Extension of the Relevant Period) Regulations 2020, have revived this relief from personal liability for wrongful trading. The long-awaited Corporate Insolvency and Governance Act 2020 is now in place but what does it mean for companies? This is likely to be of particular concern to listed companies with 31 December year ends. These extensions coincide with the announcement of additional economic measures to support the economy through the pandemic. On 26 June 2020 the Corporate Insolvency and Governance Act 2020 (CIGA) came into force after a rapid passage through all Parliamentary stages, in a little over a month. Finally, as an AGM with all shareholders invited to attend is of course impossible at this time this briefing note also provides details of the recently published best practice guidance by the Financial Reporting Council (FRC) and the Department for Business, Energy and Industrial Strategy (BEIS) which aims to assist companies to safeguard the interests of shareholders when holding an AGM using the new flexibilities contained in the Act. Corporate Insolvency and Governance Act Major UK Restructuring & Insolvency Reforms —Effective June 2020 Updated to reflect extension and reinstatement of certain temporary measures. The government has extended the temporary business protection measures under the Corporate Insolvency and Governance Act 2020 until 31 March 2021. The new Act will provide welcome clarity to companies and other qualifying bodies which have held, or will hold, an AGM during this time. The Corporate Insolvency and Governance Act (the “Act”) received Royal Assent on 25 June 2020 and is now in force. The new Regulations are important as they extend the period in which companies and “other qualifying bodies” can hold meetings under the Corporate Insolvency and Governance Act 2020 (“CIGA 2020”). To help companies consider how best to safeguard the interests of shareholders in light of the new Act BEIS and the FRC have recently published guidance on best practice for holding AGMs. The Act gives the Secretary of State powers to reduce or extend this period, but he may not extend it beyond 5 April 2021. Such measures are now contained within the Corporate Insolvency and Governance Act 2020 (the Act). The 2019 share capital authorities for those companies, in line with investor and proxy advisory guidance, will typically expire by no later than 30 June 2020 if not renewed before then. The Corporate Insolvency and Governance Act 2020 brings about the most significant changes in corporate insolvency law for nearly 20 years. insolvency regime retains its world-leading position and reinvigorate UK rescue culture, while temporary measures will provide welcome breathing space through the COVID-19 emergency. 1031 1. The Corporate Insolvency and Governance Act (the ‘CIGA’), which came into force on 26 June 2020, introduces the most significant changes to English insolvency law in a generation.In this article, we explore those changes in a ‘question and answer’ format. Conference Square This Bill was passed and The Corporate Insolvency and Governance Act 2020 (the Act… If UK Government guidance changes as we ease out of lockdown then companies should monitor and review their position and take a view on what approach best balances the safety of members and their expectation to be able to engage with the board. The amendments have, in the main, been extension of the relevant period for which they relate to. Whilst the current period of extension ends on 30 September the Act allows for regulations to extend this period further, if required, in three month increments although any extension cannot exceed 5 April 2021. As of 26 March 2021, a number of provisions within the Corporate Insolvency and Governance Act 2020 Regulations have been amended. The duration of some of the temporary measures introduced by the Corporate Insolvency and Governance Act 2020 (CIGA 2020) have been extended again so that they now end on 30 March 2021. London, 24 September 2020 – ICSA: The Chartered Governance Institute is delighted that the government has extended the flexibilities around the arrangement of company meetings during the COVID-19 pandemic included in the Corporate Insolvency and Governance Act 2020 (the Act) to 30 December 2020. Printer-Friendly Version. Peter Swabey, Policy and Research Director at the Institute, comments: “The flexibilities for companies and other organisations arranging their general meetings that were granted in the Corporate Insolvency and Governance Act 2020 were very helpful in enabling those organisations to balance their obligation to hold a meeting against their responsibility to give due consideration to the health and safety of colleagues, customers, shareholders and the communities in which they operate, and gave them a firm legal foundation to plan and hold meetings in a COVID-compliant manner. AGM arrangements. 37. Republic of Ireland. Secondly, if a company decides that it is not possible for any members to safely attend an AGM then that company should explore how members might still actively participate in a meeting by virtual means. Relevant document: 29th Report from the Secondary Legislation Scrutiny Committee. Understandably, these extensions are in response to the continued disruption from Covid-19. In relation to public companies, the Act also introduces a temporary extension for all public companies to file their accounts. The permanent measures include the introduction of a new restructuring … After being fast-tracked through Parliament, the Act came into force on 26 June 2020. Companies can take advantage of both measures and, for example, delay the date of their AGM and then hold that AGM using the new temporary flexibilities set out in the Act. Termination of moratorium under section A38 of the Insolvency Act 1986. After being fast-tracked through Parliament, the Act came into force on 26 June 2020. Firstly, it is not anticipated that all organisations will necessarily want or need to exercise the new temporary flexibilities contained in the Act to their full extent. The Corporate Insolvency and Governance Act 2020 is now in force and introduces two key measures to help those companies required to hold an annual general meeting (AGM) during this time. 2) Regulations 2020 (SI 2020/1483) was introduced to parliament on 9 December 2020 and further extended the periods above in relation to winding up petitions and the … However, on 24 September 2020 some of the temporary measures were extended by the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2020, including:- 1 July 2020. 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