Explanatory note
This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 24 December 2020, prescribe 2 dates for the purposes of Schedule 13 of the Companies Act 1993 (Schedule 13). Schedule 13 enables certain entities affected by COVID-19 to enter into business debt hibernation (BDH). Entities may now enter into BDH under that schedule up to the close of 31 October 2021 (see regulation 4).
The date prescribed for the purposes of clause 5(2)(c) of Schedule 13 (see regulation 5) does not apply for entities that are in BDH on 24 December 2020. For those entities, 30 September 2021 continues to apply for those purposes (see clauses 5(3) and 17 of Schedule 13).
Note that clause 8 of Schedule 13 provides that an entity may not enter into BDH more than once (unless a circumstance in clause 8(3) of that schedule applies).
Regulatory impact assessment
The Ministry of Business, Innovation, and Employment produced a regulatory impact assessment on 16 November 2020 to help inform the decisions taken by the Government relating to the contents of this instrument.
A copy of this regulatory impact assessment can be found at—
Issued under the authority of the Legislation Act 2012.
Date of notification in Gazette: 3 December 2020.
These regulations are administered by the Ministry of Business, Innovation, and Employment.