Executive Summary
2. The Insolvency Act and the Companies Amendment Act were passed in November 2006. Neither Act is yet in force.
3. The Insolvency Act will repeal and replace the Insolvency Act 1967 (which deals with personal insolvency). It updates that earlier Act, and introduces a new No Asset Procedure (NAP) for debtors. Regulations are needed under the new Act before it can be brought into force.
4. The proposed regulations incorporate a range of procedures and information requirements currently prescribed in the Insolvency Regulations 1970 and the Summary Instalment (District Court) Rules 1970, and also provide for additional measures required under the new Act. They are largely technical in nature, and deal with matters such as prescribed forms, fees, procedures for meeting with creditors, and information and process requirements.
5. The Companies Amendment Act 2006 amends the corporate insolvency provisions of the Companies Act 1993. It also introduces a new voluntary administration scheme as an alternative to liquidation. Regulations are required for two matters relating to the voluntary administration scheme before these provisions are brought into force.
6. The proposed changes to the Companies Act 1993 Liquidation Regulations 1994 increase the fees for the Official Assignee when acting as a liquidator in a company liquidation. It further proposes a change in the Official Assignee's charging methodology from a commission based remuneration to a time/cost remuneration.
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