Skip to main content

Lords examines Corporate Insolvency and Governance Bill at report stage

24 June 2020

Image of UK Parliament portcullis

The Corporate Insolvency and Governance Bill completed its report stage and third reading in the Lords on Tuesday 23 June.

During report stage members discussed a range of subjects including the Board of the Pension Protection Fund and regulations relating to Northern Ireland.

There were three divisions (votes) on proposed changes (amendments) to the bill.

Members considered a change (amendment 14) to stop banks and other financial creditors from seeking to accelerate payment.

160 members were in favour of this amendment, with 241 against, and so the change was not made.

A second vote was held on a change (amendment 15) which would mean a court could not give permission for the disposal of any property or asset pledged to the company's defined benefit pension scheme, unless the Pension Protection Fund has given prior permission.

136 members were in favour of this amendment, with 220 against, and so the change was not made.

A further vote was held on a change (amendment 45) to the review of pre-pack transactions.

155 members were in favour of this amendment, with 326 against, and so the change was not made.

Following the completion of report stage, the bill had its third reading.

Lords third reading: Tuesday 23 June

Members discussed the progress of the bill through the House at its conclusion of Lords stages.

Following completion of third reading, the bill now passes to the Commons for consideration of Lords amendments.

Lords committee stage day two: Wednesday 17 June

Members discussed proposed changes to the bill regarding pre-pack transactions.

Report stage, a chance to closely scrutinise elements of the bill and make changes, and third reading, a chance for members to make sure the eventual law is effective, workable and without loopholes, are scheduled to take place on Tuesday 23 June.

Lords committee stage day one: Tuesday 16 June

Members discussed a range of topics including trade union representation in the restructuring process and reviewing the impact of the Small Business Commissioner on reducing instances of insolvency.

Lords second reading: Tuesday 9 June

Speakers included vice president of the Confederation of British Industries (CBI) and a non-executive director of the London Stock Exchange.

Members discussed temporary changes to insolvency law, giving businesses the space and tools required to maximise their chances of survival during the current crisis.

Corporate Insolvency and Governance Bill

This bill aims to:

  • introduce greater flexibility into the insolvency regime, allowing time to explore options for rescue whilst supplies are protected, ensuring the maximum chance of survival
  • temporarily suspend parts of insolvency law, supporting directors to continue trading without the threat of personal liability and provide protection from aggressive creditor action
  • provide companies with temporary easements on filing requirements and holding annual general meetings (AGMs). 

Further information

Image: Pexels