Charity Commission issues insolvency advice

Charities in financial distress will have access to new rules on insolvency, which have been rushed through parliament in the last month.

The Charity Commission has issued guidance reminding charities that the Corporate Insolvency and Governance Act, which was passed into law on Friday and aims to address financial problems caused by the coronavirus pandemic, will apply to voluntary organisations as well as private companies.

The new rules include giving charities the right to apply for more time to avoid debt enforcement action, and limits the rights of contractors to terminate supply agreements with charities. The Act also temporarily suspends some provisions in order to reduce the risk that trustees are personally liable during the crisis, and places restrictions on winding up petitions where a charity cannot pay its bills as a result of the pandemic.

Find out more on the The Charity Commission website.

Where to find us

Llandrindod Wells Office

Unit 30
Ddole Road Industrial Estate
Llandrindod Wells
Powys
LD1 6DF

01597 822 191

Newtown Office

Plas Dolerw
Milford Road
Newtown
Powys
SY16 2EH

01686 626 220

Get in touch

Authentication

Cyflogwr Ystyriol / Mindful Employer
Charity Quality Standard Logo
PQASSO Level 2 Logo
Investing in Volunteers
Quality in Befriending