REINSTATEMENT OF WRONGFUL TRADING LIABILITY FOR UK DIRECTORS
As part of its response to the crisis caused by the COVID-19 pandemic, the UK government suspended the liability of UK company directors for wrongful trading from 1 March 2020. Whilst the government protections for business tenants through relief from forfeiture of leases and winding up proceedings have been extended to 1 January 2021, the protection for directors from personal liability for wrongful trading has not been extended and ended on 30 September 2020.
Under UK insolvency law, directors can become personally liable for the debts of the company where it is found that they proceeded to continue to trade a company which had no reasonable prospect of avoiding administrat…
Read the full article at: https://www.jdsupra.com/legalnews/potential-personal-liability-of-uk-96907/