Protection from Wrongful Trading claims to end on 30 June 2021

The Corporate Insolvency and Governance Act 2020 suspended liability for Wrongful Trading as part of a series of temporary measures introduced during the pandemic.

Whilst the suspension of presentation of statutory demands and winding up petitions has been extended again until the end of September, no further extension has been provided for in relation to Wrongful Trading.

Personal liability will therefore attach to directors who continue to trade after 30 June 2021 if a subsequently appointed liquidator can establish that they knew or ought to have known that there was no prospect of the company avoiding insolvent liquidation after that point.

For more information please contact Jon Law