Insolvency Law Review
The Ministry began a major review of New Zealand's insolvency law in May 1999. The objectives of the review were:
- To provide a predictable and simple regime for financial failure that:
- Can be administered quickly and efficiently
- Imposes the minimum necessary compliance and regulatory costs on its users
- Does not stifle innovation, responsible risk taking and entrepreneurialism by excessively penalising business failure;
- To distribute the proceeds to creditors in accordance with their relative pre-insolvency entitlements, unless the public interest requires otherwise;
- To maximise returns to creditors;
- To enable individuals in bankruptcy again to participate fully in the economic life of the community; and
- To provide international co-operation in relation to cross-border insolvency.
Email: insolvencyreview@med.govt.nz
Available Documents
Regulation of Insolvency Practitioners
In April 2004, the Ministry released a discussion document entitled Draft Insolvency Reform Bill for public consultation as part of the review of insolvency law that began in 1999. Among other proposals, the document sought comments on options for regulating the insolvency profession.
A second discussion document entitled Insolvency Practitioner Regulation: Options for Change was released in late 2006. The Ministry received submissions from practitioners, professional bodies and businesses on the proposals contained in this discussion document. Insolvency practitioners - Summary of submissions on the second discussion document [96 kB PDF]. The detailed submissions can be accessed here. The proposals aim to ensure that the regulatory framework for insolvency practitioners effectively manage the risks involved in corporate insolvency.
It is anticipated that any policy proposals relating to the regulation of insolvency practitioners will be reported to Cabinet around mid-2008.
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