Business West responds to changes to insolvency laws

Author
Kye Parkin
Communications Executive | Business West
28th March 2020

Commenting on Business Secretary Alok Sharma’s announcement on the relaxation of the insolvency rules, Business West Managing Director Phil Smith said:

“Businesses will welcome the government’s sensible steps to amend insolvency laws to help protect companies weakened by the impact of coronavirus.

“It is right that the rules on wrongful trading are temporarily suspended to ensure that directors are not penalised for doing all they can to save companies and jobs during this turbulent period.

“Companies that were viable before the outbreak must be supported to ensure they can help power the recovery when the immediate crisis is over.

“Cashflow remains an urgent concern for many businesses, so it’s vital that government support packages reach businesses and people on the ground as soon as possible.”

Also announced were measures to cut red tape to allow companies to produce Personal Protective Equipment (PPE) and hand sanitiser more quickly. Phil Smith comments:

“Businesses will welcome measures that help them to contribute towards the national effort to tackle coronavirus. Action to speed up the production of these supplies will be vital to limiting the spread of the virus and reducing the burden on our health service."

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