{"id":25,"date":"2026-05-26T13:25:19","date_gmt":"2026-05-26T12:25:19","guid":{"rendered":"https:\/\/clearlybusinesslaw.mrsdemo3.co.uk\/?p=25"},"modified":"2026-05-26T13:25:19","modified_gmt":"2026-05-26T12:25:19","slug":"corporate-insolvency-and-governance-bill-2020","status":"publish","type":"post","link":"https:\/\/clearlybusinesslaw.mrsdemo3.co.uk\/?p=25","title":{"rendered":"Understanding the 2020 Insolvency & Governance Bill"},"content":{"rendered":"

Corporate Insolvency and Governance Bill 2020<\/h1>

Jun 10, 2020<\/span> | Business Law Articles<\/a> | 0 comments<\/a><\/span><\/p>

\"Corporate<\/figure>

Proposed Changes Expected<\/h2>

As part of the Government\u2019s reform of insolvency law and in response to the Covid19 pandemic it is proposing changes which will protect businesses in debt to keep them trading. Amongst other changes, it is proposing to prevent suppliers relying on termination clauses if a business enters into an insolvency or restructuring procedure. This means a supplier will have to continue to supply even though there is a real risk that payment will not be made.<\/p>

The proposed restrictions won\u2019t impact on termination events after an insolvency procedure commences (if there is a provision in the contract allowing this, or if the court allows it as it would cause hardship to the supplier\u2019s own business) and there will also be a temporary exemption for small suppliers. A supplier is a small supplier if in its most recent financial year, at least two of the following conditions were met:<\/p>