Proposed Insolvency Act changes for IT and telecoms providers
The government launched a consultation on 9 July seeking views on implementing enhanced powers to ensure the continuity of the supply of essential services — notably gas, electricity, water, communication services and IT goods and services — to insolvent businesses and individuals. The idea is that suppliers of these goods and services will be unable to withdraw their services by reason of their customer’s insolvency or seek to impose preferential terms as a condition of continued supply.
Perhaps the striking aspect of the announcement is the inclusion of IT suppliers within the scope of the essential suppliers and the range of suppliers likely to be affected (including server providers, cloud storage, payment systems, website hosting and data storage). Logically, this is hard to argue with. In the modern world, there are very few businesses that could survive for long without their IT systems, and if the supplier of essential IT services withdraws supplies or imposes new onerous terms it may render a business rescue impossible.
The proposals will also cover ‘on-sellers’, which is where the supply is made through an intermediary. The consultation gives as examples of on-sellers the common scenario in the retail sector where a number of different IT and telecoms services may be used to run store and till equipment and to accept credit card payments. Another example given is those landlords who charge tenants for the supply of electricity or other services…
Click on the link below to read the rest of the Walker Morris briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Landlords must protect tenants’ deposits and provide tenants with prescribed information, regardless of when the tenancy commenced and when the deposit was received.
In the Yam Seng case, the court was willing to imply a duty of good faith to give business efficacy to a commercial contract. Since that case, the law has been somewhat uncertain.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.