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