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Published date: 2 July 2024

Companies Act 2014: Changes to Test for Reckless Trading Take Effect

The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 has been commenced with effect from 1 July 2024.

The Act makes certain amendments to the existing collective redundancy regime in insolvency situations and amends the Companies Act 2014 to improve the dissemination of information to employees as creditors in a corporate insolvency situation. Further detail on these aspects of the Act is available here.

The Act also amends the provisions in the Companies Act 2014 concerning reckless trading, including changing the test from a subjective to an objective one. For more, see our recent Insights post.