A temporary safe harbour for directors

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:

• our article Safe harbour guidance for directors
• MBIE’s press release Safe harbour for company directors to expire