The Corporate Insolvency and Governance Act (CIGA) has protected businesses during the worst of the pandemic, but measures are being withdrawn now. David Mohyuddin QC, Radcliffe Chambers, explains
The Corporate Insolvency and Governance Act (CIGA) became law on 26 June 2020. It introduced two new procedures to assist in restructuring: the restructuring plan under the new part 26A of Companies Act 2006 and the so far scarcely used moratorium. It also introduced restrictions on the use of winding up petitions and suspended personal liability for wrongful trading.
The government’s aim of protecting small business and tenants must have informed the approach in CIGA – and continues to do so.
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