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Insolvency rules suspended to help struggling firms
Alok Sharma: ‘common sense approach‘
Struggling companies undergoing a rescue or restructure process will be allowed to continue trading, giving them breathing space to avoid insolvency.
The change involves temporarily suspending wrongful trading provisions retrospectively from 1 March for three months for company directors so they can keep their businesses going without the threat of personal liability.
Firms will be able to buy much-needed supplies, such as energy, raw materials or broadband, while attempting a rescue,.
UK Business Secretary Alok Sharma said: “Applying a common sense approach to regulation will ensure products are safe and reach the market without any unnecessary delay, getting vital protective equipment such as face masks to frontline staff as quickly as possible.