Objectives
The objectives are to:
- provide processes for dealing with personal and corporate insolvency that can be administered quickly and efficiently, pose the minimum necessary compliance and regulatory costs on its users, and do not stifle innovation, responsible risk taking and entrepreneurialism by excessively penalising failure;
- distribute the proceeds in insolvency to creditors in accordance with the relative pre-insolvency entitlements;
- maximise the returns to creditors by providing flexible and effective methods of insolvency administration and enforcement; and
- enable individuals in bankruptcy to participate again fully in the economic life of the community.
In accordance with these objectives the regulations under the Insolvency Act 2006 are intended to:
- streamline and simplify existing procedures and requirements prescribed under the Insolvency Regulations 1970 and the Summary Instalment (District Courts) Rules 1970;
- take into account new measures introduced in the 2006 Act; and
- take into account technological advances, such as the development of the internet, for processing applications and advertising notices under the 2006 Act.
The regulations relating to Companies Amendment Act 2006 provide for two procedural matters relating to administration of companies.
Regulation changes are also proposed to provide for fees and rates of remuneration that appropriately recover the costs of bankruptcy, summary instalment orders and liquidations, while not acting as a barrier to debtors applying for these processes.
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