From 1 March 2020 until 30 June 2021, the rules on wrongful trading were suspended – albeit there was a short period between 1 October 2020 and 25 November 2020 where they did apply.
The temporary suspension has now lapsed, meaning that the courts will no longer assume that a director was not responsible for any worsening of the financial position of the company from 1 July 2021 onward.
For any directors who may have taken a more relaxed approach to their directors duties during this period, they should ensure that they fully understand and comply with their obligations and duties moving forward to minimise and hopefully avoid personal liability. Our quick guide to director duties provides a helpful overview of those duties.
