The Lord Chancellor, the Right Honourable Robert Buckland MP, Secretary of State for Justice, has approved and signed a new Insolvency Practice Direction (IPD) and an amendment to the Insolvency Proceedings Practice Direction 2018.
The Practice Direction and amendment to the Insolvency Proceedings Practice Direction primarily deals with a range of measures for insolvency practice under the Corporate Insolvency and Governance Act 2020 (CIGA) and are in response to the immediate Covid-19 emergency. These include provisions for the process by which a winding up petition will remain private unless and until a judge has decided that inability to pay the debt on which the statutory demand is based is not as a result of the current pandemic, including a pre-trial review and preliminary hearing. The Practice Direction also contains a range of reforms to corporate governance and insolvency following a major consultation in 2017, the response to which was published in August 2018.
The Practice Direction and the amendment have been approved by the Chancellor of the High Court and drafted by Mr Justice Zacaroli, chair of the Insolvency Rules Committee with the Chief Insolvency and Companies Court Judge, Judge Briggs, Mr Justice Snowden and Mr Justice Trower.
The new Practice Direction will be uploaded online.
A PDF version of the Practice Direction and the amendment to the 2018 PD are available below.