The government has announced a new extension to breathing space measures that will be used to protect businesses from insolvency during the coronavirus (Covid-19) pandemic.

The government announced it intends to extend the power (granted through the Corporate Governance and Insolvency Act) to make temporary amendments or modify the effects of corporate insolvency and governance legislation for an additional year. The government laid the regulations on 11th February 2021 in Parliament ahead of the power expiring on 30th April 2021.

The government also announced that companies and other qualifying bodies with obligations to hold AGMs will continue to have the flexibility to hold these meetings virtually until 30th March 2021. This means that shareholders can continue to examine company papers and vote on important issues remotely.

Business Minister Lord Callanan said “It is vital that we continue to deliver certainty to businesses through this challenging time, which is why we are now extending these important and necessary measures to protect companies from insolvency.”

“Through this measure, we want to ensure businesses are able to not only come through this testing period, but also to plan, adapt and build back better.”