The Companies (Rescue Process for Small and Micro Companies) Act 2021 amends the Companies Act 2014 to allow small and micro companies – which make up around 98 per cent of all companies – to access a new dedicated rescue process.

The new process was developed by the Company Law Review Group (CLRG) in response to the high costs associated with the examinership process.

Robert Troy, minister for trade promotion, digital and company regulation, said: “This rescue process is modelled on our existing examinership process and founded on a bedrock of well understood procedures and precedents.

“It is a simplified and effective process that I believe will give small and micro companies a genuine opportunity to restructure and continue to trade. If any small business is experiencing temporary difficulties but is fundamentally viable, I would encourage them to consider this process as a suitable option.”