Termination clauses in supply contracts Section 15: Temporary exclusion for small suppliers
Suppliers which are small entities are temporarily excluded from the effect of the new section 233B of the Insolvency Act 1986. Where the company enters a relevant insolvency procedure and a supplier to the company meets the qualifying conditions of a small entity, set out in this section, section 233B of the Insolvency Act shall not apply to that supplier. The qualifying conditions are that at least two of the following apply: the supplier’s turnover was not more than £10.2 million (or an average of £850,000 each calendar month if the supplier is in its first financial year); the supplier’s balance sheet total was (or is) not more than £5.1 million; and the number of the supplier’s employees was (or is) not more than 50. The period for which this exclusion applies begins with the day on which this Act comes into force and ends with 30 September 2020.