The Ratings (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill recently had its second reading and it’s anticipated to become law later this year.
What is the bill?
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill was introduced to the House of Commons on 12 May 2021.
The Government argues that Material Change of Circumstances (MCCs) are not the appropriate way for ratepayers to seek reductions in their business liabilities due to a disruption related to COVID-19.
Why is this being introduced?
These rules are being introduced after the government provided vast amounts of financial support to help businesses trade through the economic uncertainty brought on by the Coronavirus pandemic.
As it stands, the value of approved government lending is recorded at £46.36 Billion.
The Government and Insolvency Service intend to take action against company directors who have misused the financial support schemes or attempt to evade responsibility for misconduct.
The Insolvency Service will soon be given powers to investigate directors of limited companies that have been dissolved, in order to determine whether the dissolution was fraudulent or to avoid the repayment of debt.
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About the author
Iain Bould is the head of our Commercial Litigation department.
Iain has over 28 years of experience in Commercial Debt Recovery having worked in both Private Practice and Industry and brings a pragmatic and commercial approach to recovering debts. With extensive experience working across all industry sectors, Iain has particular expertise in working with Insolvency Practitioners in advising and recovering outstanding insolvent company ledgers.
If you need any advice or further information please contact Iain at firstname.lastname@example.org