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14 December 2020

Notification of two new statutory rules


The Corporate Insolvency and Governance Act 2020(Coronavirus) (Suspension of Liability for WrongfulTrading) Regulations (Northern Ireland) 2020

Please be advised that, on 10 December 2020, the Department for the Economy has made the above Regulations, in exercise of the power conferred by Section 28(1)(c) of the Corporate Insolvency and Governance Act 2020(1).  The Regulations came into operation on 14 December 2020. 

These Regulations temporarily suspend liability under wrongful trading provisions in the Insolvency (Northern Ireland) Order 1989 (1989 No. 2405 (N.I. 19)): specifically, Article 178 (wrongful trading).

Regulation 2 provides for the suspension of wrongful trading.

Paragraph (1) of that regulation provides that, for the purposes of Article 178 of the Insolvency (Northern Ireland) Order 1989, the High Court is not to hold a person liable for any worsening of a company’s financial position during the “relevant period”. Paragraph (2) defines the “relevant period” as the period beginning on 14 December 2020 and ending on 30 April 2021.

Paragraphs (3) to (5) and (8) specify cases where, (or types of corporate entity in respect of which), the suspension of wrongful trading is not to apply. Accordingly, Article 178 continues to apply in those cases, (or, in respect of those entities), during the relevant period.

Paragraph (7) provides that regulation 3 has effect as if it is part of the Insolvency (Northern Ireland) Order 1989.

The link below brings you to a copy of the Statutory Instrument.

https://www.legislation.gov.uk/nisr/2020/320/made

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The Corporate Insolvency and Governance Act 2020-(Amendment of Certain Relevant Periods) (No. 2)-Regulations (Northern Ireland) 2020

Please be advised that, on 10 December 2020, the Department for the Economy has made the above Regulations, in exercise of the powers conferred by Section 42(1)(b) of the Corporate Insolvency and Governance Act 2020(1).  The Regulations come into operation on 31 December 2020. 

These Regulations extend the period during which certain provisions in the Corporate Insolvency and Governance Act 2020 (c. 12) (“the Act”) that make temporary modifications to corporate insolvency law to mitigate the effects of coronavirus are to have effect.

Among these are provisions concerning company winding-up petitions which the Act originally provided were to expire on 30 September 2020.

The Corporate Insolvency and Governance Act 2020 (Amendment of Certain Relevant Periods) Regulations (Northern Ireland) 2020 (S.R. 2020 No. 199) provided for the provisions concerning company winding-up petitions to now expire on 31 December 2020.

Regulation 2 of these Regulations further extends the period during which the modifications made by these provisions will apply by providing for the provisions to instead expire on 31 March 2021.

The link below brings you to a copy of the Statutory Instrument.

https://www.legislation.gov.uk/nisr/2020/321/made



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