At the start of the Covid-19 pandemic, the Government put several measures in place to help companies through.
One of the measures was the suspension of wrongful trading. The threat of directors’ personal liability from wrongful trading was removed. While this suspension is in place, liquidators or administrators cannot take action against directors for liabilities incurred up to 30 September 20. All the other checks and balances on directors remained in place.
while most of the other measures put in place back in April have had an extension, the moratorium on wrongful trading has not and this will end on 30 September (tomorrow). This will put many directors in the firing line if they are found to be trading whilst insolvent and the position of creditors continues to worsen.
The tourism and hospitality sectors have been particularly badly affected by the pandemic and directors in these sectors need to be aware as many companies in these sectors are facing a winter with no / very limited income.
Our top tips are to forecast and review the forecasts on a regular basis and take professional advice!
For more information on all types of insolvency procedure, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230030 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Friffield, Scunthorpe or York offices.