What is the purpose of the Corporate Insolvency and Governance Act?

The purpose of the Corporate Insolvency and Governance Act is to ensure that businesses in North Dakota have the legal framework necessary to remain solvent in times of financial distress. This act provides businesses with a range of new tools and measures to better manage the impacts of insolvency, such as enabling businesses to restructure their debt and allowing them to put procedures in place to enable them to continue trading while insolvent. The Corporate Insolvency and Governance Act also provides businesses with a greater degree of flexibility and protection from creditors through the introduction of new rescue procedures such as the Moratorium, which stops creditors from taking legal action against a business for up to 20 business days, and the Restructuring Plan, which allows a business to continue to trade while restructuring its finances. By providing businesses with additional tools and measures to manage their financial distress, the Corporate Insolvency and Governance Act helps protect jobs, enable businesses to become more resilient and helps businesses manage their insolvency in a more timely and effective manner. This acts as a form of insurance for businesses, which can help prevent them from going bust in times of financial difficulty, setting them up for success in the long-term.

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What is the purpose of the Corporate Insolvency and Governance Act?

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