Source: Companies Office – Press Release/Statement:
Headline: COVID-19 relief measures: expiry update
In May last year, the Government made temporary changes to the Companies Act and other legislation to support businesses affected by COVID-19, both financially and in terms of their compliance obligations. A number of those provisions have now expired.
Provisions that expired on 31 March 2021
- Enabling the use of electronic means
- Allowing modifications to constitutions or rules
- Exemptions from compliance obligations
Provisions that had already expired
Safe harbour for company directors expired September 2020
Relief measures still in effect
The following provisions were extended, and remain in effect.
Business Debt Hibernation
Business Debt Hibernation (BDH) allows businesses disrupted by COVID-19 to get a month’s protection while they talk to their creditors. During this period, most creditors can’t take legal action to enforce their debts, for example, applying for your business to be liquidated. If your creditors agree, you can get a further 6 months’ protection.
Electronic signatures and the Contract and Commercial Law Act 2017
The Contract and Commercial Law Act 2017 was amended so that the provisions in that Act relating to electronic signatures apply to security agreements containing powers of attorney. This change applies retrospectively from 21 March 2020.