CIGA came into force in June 2020 with a number of temporary measures in response to the COVID-19 pandemic. A key measure, introduced by CIGA, was the restriction on using the winding-up process.
Restrictions on winding-up petitions extended
On 22 June 2021, the temporary restrictions on winding-up petitions and orders were extended from 30 June 2021 to 30 September 2021. The impact of this extension means:
- you cannot present a winding-up petition against a company based on a statutory demand that was served between 1 March 2020 and 30 September 2021; and
- you cannot present a winding-up petition between 1 March 2020 and 30 September 2021 based on the company’s inability to pay its debts unless you have reasonable grounds for believing COVID-19 has not had a financial effect on the company or the debt issues would have arisen anyway.
These temporary restrictions have already been extended a number of times from their original expiry date of 30 September 2020.
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