Nus Ghani, MP for Wealden, welcomes the Corporate Insolvency and Governance Bill, which will offer new security to small businesses.
Through this Bill, the Government will put in place a series of urgent measures to amend insolvency and company law to support business resulting from the impact of Covid-19.
The Bill consists of a series of measures designed to provide support and temporary flexibilities for businesses that are coping with reduced resources. It will:
- provide breathing space from creditors while a rescue is sought
- prevent suppliers from ceasing supply or demanding additional payments during a rescue process
- introduce a new restructuring plan which binds creditors to it
- flex the insolvency regime to meet the demands of the emergency
- temporarily remove the threat of wrongful trading liability from directors trying to keep a business afloat
- temporarily stop creditors filing winding-up petitions for Covid-19 related debts
Nus Ghani said: “As both an MP for a constituency with many small businesses and as a member of the Business, Energy and Industrial Strategy Select Committee, I was pleased to support the Government in introducing these new provisions. With many businesses across Wealden raising concerns about the impact of Coronavirus on their trade and workers, I am pleased that Wealden District Council has already paid out £36.4 million to local businesses through the original Covid business support schemes. I believe this Bill will further aid in the recovery of the local economy and protecting local jobs.”
The full text of the Secretary of State's letter, outlining the Bill's provisions, can be found on Nus's website here.
