Temporary changes to insolvency laws – The way forward

Due to recent changes made to insolvency laws in light of the COVID-19 pandemic, your company can't be wound up and you can't be bankrupted without having six months' notice. As a director, you also won't be liable for insolvent trading for six months from 25 March 2020.

This doesn't mean you should delay looking at your business and considering your options if you're in significant financial distress. Rather, you should take advantage of the time you now have to properly assess your position and work out the best way to try and protect your business and your personal assets.

Directors should also realise that there are a range of other legal actions that could be taken against them if their company goes into liquidation which have not been suspended and need to be considered when assessing the business.