Insolvency and directors' duties

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. For what stated reason can the court order directors to do if a company goes into liquidation?

  2. What stated consequence is there for directors who continue to trade knowing that their company has no reasonable prospect of avoiding liquidation?

  3. What does the acronym CIGA stand for?

  4. Why is it particularly important for directors to make themselves aware of insolvency laws at this time?

  5. What has the Government introduced to bolster economic confidence about insolvencies?

  6. What was the aim of the Government's suspension of wrongful trading provisions?

  7. Which of the following are two temporary measures the Government has added to the Corporate Insolvency and Governance Act 2020 (CIGA)?

  8. Which of the following most accurately describes a moratorium under CIGA?

  9. Why might companies want to consult accountants towards September?

  10. Which of the following answers contains the two questions directors of companies in financial difficulties should be asking at board meetings?