The current economic climate is tough for all businesses. Government has introduced new insolvency legislation to give businesses in distress more opportunity to turn things around. Following successful lobbying by Co‑operatives UK, these reforms now apply to co‑operative and community benefit societies as well as companies.
Our guidance for societies facing financial strife (updated in September 2020) clearly outlines the steps societies should take when experiencing financial difficulty. It explains:
- Solvency and liquidity
- The first steps to take
- Two quick indicators of financial strife
- Ways to respond
- Other governance issues to address during this time of crisis.