After a seven-week consultation period, submissions have now closed on the proposed amendments to the Insolvency Practitioners Bill 2010.
The Minister of Commerce and Consumer Affairs announced the consultation in early July, following the introduction of a Supplementary Order Paper which would make significant changes to the Bill. The Bill has now been referred back to Select Committee.
The Supplementary Order Paper proposes, among other things:
A new co-regulation model for insolvency practitioners, to impose and monitor the minimum standards to be applied to insolvency practitioners;
A new statutory right for aggrieved parties to apply to the Court for redress if they consider they have suffered a loss as a result of an insolvency practitioner's failure to comply with their legal obligations;
The exclusion of related creditors from voting in creditors' meetings, unless the Court orders otherwise;
A further restriction on when liquidators may be appointed by directors or shareholders, in circumstances where a creditor has also made an application to liquidate;
A new duty on practitioners to report "serious problems" they discover;
A new voidable transaction provision for dispositions that happen after a liquidation application has been filed.
The Supplementary Order Paper can be found here. Bell Gully's submission can be found here.
If you would like to discuss any aspect of this, please contact the authors or our restructuring and insolvency team.
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.