Corporate Insolvency and Governance Act 2020

Lord Hendy Excerpts

Wednesday 29th July 2020 Lords Chamber

[Lord Callanan]

I understand the point my noble friend makes, but I think that the provisions are fairly well known and understood in the insolvency profession. There is a wide circle of people who know all about them and who specialise in this area, but I am happy to consider my noble friend’s suggestion.

[Lord Hendy (Lab) [V]]

My Lords, in view of the fact that I have just learned that only one company has availed itself of the moratorium process, the answer to my question is now obvious. However, my question is this: has the Minister been able to make any assessment of the effect of the provision that workers be involved in moratoria by being informed? In the light of any such assessment, might it not be better to involve the workforce by consultation in advance?

[Lord Callanan]

I know the noble Lord feels strongly about these matters, and we discussed this during the passage of the legislation. We strengthened the monitor’s role to include a requirement in guidance that the monitor should ensure that the directors of a company have informed all employees that a moratorium has come into force. However, it is too early to see how this will work in practice.