Corporate Insolvency and Governance Act 2020
What this means for your business
- Enforced by
- Companies House
- Applies to
- United Kingdom
- On this page
- 3 compliance obligations, 1 practical guide
What you must do
3 compliance obligations under this legislation.
Offences and prohibitions 3
Fail to notify monitor of moratorium start
If a company’s directors do not tell the appointed monitor as soon as reasonably practicable that a moratorium has begun, each director who cannot show a reasonable excuse commits a criminal offence.
Fail to notify monitor when moratorium starts
If the directors do not tell the appointed monitor, as soon as reasonably practicable, that a moratorium has come into force, any director who cannot show a reasonable excuse commits a criminal offence. The offence is punishable under the Corporate Insolvency and Governance Act, but the exact fine or custodial sentence is set elsewhere in the legislation.
Fail to provide required explanatory statement for compromise meeting
Unlimited fineIf your company arranges a creditors or members’ meeting about a compromise or reconstruction and does not attach the required explanatory statement to the meeting notice, or does not give a free copy of that statement when requested, the company and any officer who is in default commit an offence. On conviction you face an unlimited fine; there is no custodial sentence.
Penalties for non-compliance
3 penalties under this legislation. 1 carry an unlimited fine.
Fail to provide required explanatory statement for compromise meeting
Unlimited fine
Fail to notify monitor of moratorium start
Penalty applies
Fail to notify monitor when moratorium starts
Penalty applies
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
64 classified provisions from this legislation.
Duties 2
Offences and penalties 4
Powers 11
- s.20 Regulations to amend legislation: Great Britain
- s.21 Purposes
- s.22 Restrictions
- s.24 Expiry
- s.25 Consequential provision etc
- s.28 Regulations to amend legislation: Northern Ireland
- s.33 Consequential provision etc
- s.39 Temporary power to extend periods for providing information to registrar
- s.41 Power to change duration of temporary provisions: Great Britain
- s.47 Power to make consequential provision
- Schedule 2 Moratoriums in Great Britain: contracts involving financial services
Definitions 10
- s.2 Moratoriums in Great Britain: further amendments and transition
- s.5 Moratoriums in Northern Ireland: further amendments and transition statutory provision
- Schedule 6 Moratoriums in Northern Ireland: contracts involving financial services contract or other instrument involving financial services Financial contract Securities financing transaction
- s.27 Interpretation coronavirus corporate insolvency or governance legislation corporate insolvency or restructuring procedure
- s.36 Interpretation coronavirus corporate insolvency or governance legislation corporate insolvency or restructuring procedure
- s.40 Section 39: the listed provisions
- s.42 Power to change duration of temporary provisions: Northern Ireland coronavirus relevant provision the Assembly
- s.45 Modified procedure for regulations of the Scottish Ministers relevant provision regulations that are subject to the made affirmative procedure
- Schedule 11 RESTRICTION ON WINDING-UP PETITIONS: NORTHERN IRELAND relevant period the 1989 Order coronavirus
- Schedule 14 Meetings of companies and other bodies qualifying body relevant period the appropriate national authority
Exemptions 12
- Schedule 10 Restriction on Winding-Up Petitions: Great Britain
- s.12 Suspension of liability for wrongful trading: Great Britain
- Schedule 12 Protection of supplies of goods and services: Great Britain
- s.13 Suspension of liability for wrongful trading: Northern Ireland
- s.14 Protection of supplies of goods and services: Great Britain
- s.15 Temporary exclusion for small suppliers: Great Britain
- s.18 Protection of supplies of goods and services: Northern Ireland
- s.19 Temporary exclusion for small suppliers: Northern Ireland
- s.34 Procedure for regulations made by the Department
- s.43 Modified procedure for regulations of the Secretary of State
- s.44 Modified procedure for regulations of the Welsh Ministers
- Schedule 13 Protection of supplies of goods and services: Northern Ireland