Executive Summary
In November 2006, the Insolvency Act 2006 and the Companies Amendment Act 2006 were passed. Neither Act is yet in force.
The Insolvency Act will repeal and replace the Insolvency Act 1967 (which deals with personal insolvency). It updates the earlier Act, and introduces a new No Asset Procedure for debtors. The regulations proposed in the paper are needed under the new Act before it can be brought into force. 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 Act.
The Companies Amendment Act 2006 amends the corporate insolvency provisions of the Companies Act 1993, including adding a new voluntary administration scheme as an alternative to liquidation. The aim of this scheme is to rehabilitate companies, where appropriate, rather than result in their liquidation. Regulations are needed for two matters relating to voluntary administration, in order to bring that scheme, and other important changes to the corporate insolvency provisions of the Companies Act into force.
Regulations relating to fees for debtor applications for bankruptcy and for summary instalment order, to rates of remuneration for supervisors under summary instalment orders and the Official Assignee in relation to summary instalment orders, bankruptcies and liquidations, and to the remuneration of other liquidators are also proposed. The new fees, and the regulations relating to rates of remuneration under summary instalment orders, are needed as a result of new processes undertaken by the Official Assignee. The other revised rates of remuneration update the existing rates of remuneration to recover the costs of administering bankruptcies and liquidations.
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