Power to amend corporate insolvency or governance legislation
This measure will create a time limited provision allowing the Secretary of State or the Department for the Economy in Northern Ireland (the "relevant authority") to temporarily amend corporate insolvency and related legislation through regulations made by SI (in Northern Ireland, SR). Amendments made under the power contained within this provision may be made to both primary and secondary legislation (falling within the definition of "corporate insolvency or governance legislation"). Providing for temporary legislative change in this way will mean that the insolvency and business rescue regime may quickly react and adapt to deal with significant and potentially unexpected future challenges presented by the impact of the COVID-19 pandemic on business.
	Temporary amendments to legislation may be framed to give protection to companies which would be viable but for the effect of the pandemic, and to provide the regulatory support needed for their survival rather than being forced to enter insolvency proceedings. Changes may also allow for a temporary increase in flexibility in provisions within corporate insolvency and restructuring processes. This could be to mitigate the increased difficulty in adhering to those processes, such as meeting time limits, which may be caused by the impact of the pandemic. The provision could also be used to make temporary amendments to the insolvency related enforcement regime, to ensure that it remains fair and workable in the face of the impact of the pandemic on business.
	There are currently no specific plans to use the power contained within this provision, but as the full extent of the impact of the pandemic on business becomes clear, it could be exercised to make urgent preventative or mitigatory amendments. Any changes made by the use of the power in this provision must be kept under review by the relevant authority and revoked if no longer needed or revised to take account of changing circumstances.
	The power contained in this provision is wide-ranging, but has some significant restrictions.
	The impact of any proposed amendments on any person (such as a creditor or employee) likely to be affected by them must first be considered.
	The relevant authority must be satisfied that there is an urgent need for the proposed temporary amendments.
	The temporary amendments made must be proportionate to the challenges presented.
	The effect of the amendment could not practicably be achieved without legislative change.
	The provision may not be used where the proposed amendment could be made sufficiently quickly using existing provisions.
	In addition, amendments made under this provision may not create a criminal offence or a civil penalty, though they may modify the circumstances under which a person is guilty of an existing offence or civil sanction. The provision may not be used to create or increase a fee.
	An SI (in Northern Ireland, SR) containing regulations to temporarily amend legislation under this provision would be subject to a "made affirmative" process, which means that the changes will be effective immediately upon the SI being made. This is necessary because the need for temporary amendments is in most cases likely to be pressing, and the time delay in seeking approval by both Houses of Parliament or the Northern Ireland Assembly in the normal way could have a detrimental effect. The SI is however required to be laid as soon as possible after being made, and will require approval by both Houses or the Assembly, as appropriate, within 40 sitting days, or the change will cease.
	Temporary changes made in this way may last for a maximum of 6 months, but can be extended using a similar "made affirmative" process. The temporary changes may also be curtailed through an SI subject to a negative resolution process and they must be revoked or amended, if it is clear that the impact of the pandemic has eased sufficiently.
	This provision to make temporary changes will itself expire on 30 April 2021, but may be extended after that date if the impact of the pandemic is still being felt by business. Such an extension would be through an SI subject to the normal affirmative procedure. The expiry date may not be extended by more than a year and, although the expiry date can be extended more than once, the final expiry date may not be a date which is more than two years after this Act gained Royal Assent.