IoD Rules Review

Reminder for IoD members: Have your say on the proposal to change the IoD Rules. Log in for more information.

COVID-19 updates

A temporary safe harbour for directors

type
Legislation
author
By Institute of Directors
date
15 Oct 2020
read time
1 min to read
Paper packages

Earlier this year the government announced a temporary insolvency package to assist directors and organisations in responding to the challenges created by COVID-19, including introducing a ‘safe harbour’ for directors and a debt hibernation scheme.

To help provide more certainty for directors in complying with their duties during the COVID-19 pandemic, the government introduced a ‘safe harbour’ for directors. The COVID-19 Response (Further Management Measures) Legislation Act 2020 includes:

  • a temporary ‘safe harbour’ from insolvency-related directors’ duties under the Companies Act 1993 and
  • a new regime which will allow some organisations affected by COVID-19 to temporarily place existing debts into hibernation (ie a moratorium on the payment of debts).

The ‘safe harbour’ from insolvency-related duties expired on 30 September 2020. The business debt hibernation scheme is currently still available until December 2020. For more see:

Related content