ADVICE: Sam Pedley THE extension of temporary measures to protect businesses and their directors during the coronavirus pandemic has been welcomed by a county legal expert. Sam Pedley, a partner at Worcestershire law firm mfg Solicitors, said businesses had been given vital “breathing space” with the extension of two insolvency measures until June 30, 2021. Measures brought in last summer as part of the UK Corporate Insolvency and Governance Act 2020 provided temporary protections during the coronavirus pandemic. A suspension of personal liability for “wrongful trading” has protected directors from being prosecuted if they fail to act in the best interests of their company’s creditors, once the business becomes insolvent.
The Corporate Insolvency and Governance Act 2020 introduced a number of temporary changes to UK insolvency laws last year. Those changes, together with other measures such as the moratorium on forfeiture proceedings have recently been extended, we assume, to avoid the perceived cliff edge of insolvencies that might follow if such measures are brought to an end abruptly.
As with many of the UK government announcements and legislative changes, these have been announced in a piecemeal fashion and it is not always easy to keep track of what has been extended and until when. Below is a summary of the position as it currently stands:
The financial year to 31 December 2020 has been a very challenging period, during which the COVID-19 pandemic and the protective measures that were subsequently introduced, have had a significant impact on the economy, whilst also affecting the personal and working lives of most people. This global health crisis has had a wide reaching impact across our society and the thoughts of the Directors are with all of those who have been affected.
Against this economic backdrop, it is encouraging to report on the positive progress that has been achieved by your Company, with NAV total return at the year end increasing to 148.93p per share. This growth reflects the strength and resilience of the underlying portfolio, and the ability of investee companies to adapt to the evolving market conditions. The AIM quoted portfolio made a strong contribution to the overall performance with most investee companies reporting positive trading updates, which resulted in share price appreciation. C
Investors have voiced concerns over the future of annual general meetings as corporate giants scramble to decide whether to hold physical shareholder events for a second year.
Stock market stalwarts including Marks & Spencer and BT are considering whether to allow shareholders to physically attend their AGMs this summer as Britain eases out of lockdown.
Temporary legislation was introduced last year to allow companies to hold online-only AGMs due to the pandemic. The suspension, under the Corporate Insolvency and Governance Act, expired last week. However, Covid restrictions on public gatherings in England will not be fully lifted until June 21.
Gathering storm: Stock market stalwarts including Marks & Spencer and BT are considering whether to allow shareholders to physically attend their AGMs this summer
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