FPM Accountants says Northern Ireland businesses must be included in new legislation being introduced by the UK Government to protect companies facing insolvency who have been impacted by Covid-19.
The new measures, announced by Business Secretary Alok Sharma on 28 March 2020 aim to enable UK companies undergoing a rescue or restructure process to continue trading, giving them breathing space that could help them avoid insolvency.
Commenting on the new measures, Alison Burnside, a licensed insolvency practitioner and Director with FPM Accountants Ltd said:
“Loss of income due to the impact of Covid-19 is affecting many Northern Ireland businesses, particularly those in the retail, licensed trade and hospitality sectors. While the Minister’s announcement is welcome news for businesses in the UK, it is critical that the new measures enabling companies undergoing a rescue or restructure process to continue trading are extended to businesses in Northern Ireland.”
The legislation will include temporarily suspending wrongful trading provisions retrospectively from 1 March 2020 to help ensure directors are not penalised for doing all they reasonably can to protect the company trading and the livelihoods of their employees.