Cook Islands passes PSDI-supported COVID-19 Economic Response Act
The Parliament of the Cook Islands passed the Covid-19 Economic Response Act on 2 July. The Act was drafted with support from PSDI and is intended to assist otherwise profitable and viable businesses in the Cook Islands that are affected by COVID-19 to continue trading, preserve their economic value, and retain employees.
The Act provides:
- relief to directors of stressed companies from liability for certain decisions taken during the outbreak of COVID-19
- a temporary moratorium on enforcement of debts owed by businesses
- protection to anyone dealing with companies from having transactions made during the outbreak of COVID-19 unwound under voidable transaction provisions
- loan, guarantee, and indemnity support for businesses from the Crown.
The protection period covers 1 March 2020 to 28 February 2021, with provisions for two six-month extension periods if needed.
PSDI will continue to support the government as it works to implement the Act.