Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Bill brings new protections for consumers and creditors

Hon Kris Faafoi

Minister of Commerce and Consumer Affairs

13 June 2019

MEDIA STATEMENT

Insolvency Practitioners Bill brings new protections for consumers and creditors

Legislation passed last night means liquidators will need to be licenced and meet basic standards of honesty and competence - moves enacted to protect creditors and the public, Commerce and Consumer Affairs Minister Kris Faafoi says.

The Third Reading of the Insolvency Practitioners Regulation Bill and the Insolvency Practitioners Regulation (Amendments) Bill address some failings of the previous system, and shut down the ability of liquidators who fell short on skills and integrity.

“One of the main aims of corporate insolvency law is for businesses to be turned around if they are viable but if they are not, they should be wound up, the assets realised and distributed to creditors in accordance with clear rules and with a minimum of harm to both the insolvent party and their creditors.

“Unfortunately, what has happened in some cases is that liquidators fail to protect the interests of creditors, for example, by turning a blind eye when directors have taken assets out of the company under value prior to liquidation.

“The public is entitled to expect insolvency practitioners to meet basic standards of honesty and competence but this is not always the case.

“I hope other historical reports of practitioners being convicted of dishonesty offences with regards to the performance of their role, charging excessive fees, carrying out unnecessary work in order to generate extra fees, or treating some creditors preferentially will become just that – historical.”



The Insolvency Practitioners Regulation Bill:

· introduces a robust regime that will include rigorous competence, honesty and integrity criteria in relation to obtaining and retaining a licence to act as an insolvency practitioner (this will come into effect 12 months after the Bill receives royal assent)

· provides effective ways for holding practitioners to account

The Insolvency Practitioners Regulation (Amendments) Bill makes other amendments to the Companies Act and Receiverships Act. This Bill is aimed at updating these pieces of legislation to make sure they are still fit for purpose and reflect the new Insolvency Practitioners Regulation Bill. The amendments:

· update these Acts to reflect new requirements for the licensing of insolvency practitioners

· increase the transparency of practitioner appointments

· improve practitioner reporting requirements.

“I would like to thank the members of the Insolvency Working Group and all of the people who submitted on the Insolvency Practitioners Bill,” says Mr Faafoi. “Together we have made another step towards ensuring consumers and creditors interests are protected.”

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


"Biggest Shake-Up In 30 Years": Agency Teamups In New Public Service Act

Minister of State Services Chris Hipkins today announced the most significant changes to the New Zealand Public Service since the State Sector Act of 1988...

Under the changes, boards, made up of chief executives from relevant government agencies, will be established to tackle the most pressing issues. These boards, or joint ventures, would be accountable to a single minister and receive direct budget appropriations. Public servants from across the system will be deployed as required. More>>

 

Principals Reject Offer: Primary Teachers Vote For Settlement

Primary teachers have voted to ratify a proposed settlement that will give them pay parity with their secondary colleagues, but disappointed primary principals have rejected a settlement that was unchanged from a previously rejected offer. More>>

ALSO:

Pike River: Weeks Of Work Before Team Gets Beyond 170 Metres

No items of interest have been found in the latest forensic search of the tunnel between 30 and 170 metres, however, both the police and the Pike River Recovery Agency say it has been useful. More>>

ALSO:

Remaking Elections: Call For Four-Year Term, More MPs

A Victoria University report is proposing extending the parliamentary term to four years, and increasing the number of MPs, so politicians can plan better for the future. More>>

ALSO:

Health: Ban On Smoking In Cars With Children Passes First Reading

The Smoke-free Environments Amendment Bill would allow police to issue $50 fines for those smoking with passengers under 18 years of age. More>>

ALSO:

Fair Pay Agreements Good: CTU Releases Report On Sector Bargaining

The Council of Trade Unions has released an independent report conducted by economic research company BERL into the validity of sector bargaining. More>>

ALSO:

Goldsmith New National Finance Spokesperson: Amy Adams To Leave Politics In 2020

Amy Adams has announced she will retire from politics at the 2020 election and as a consequence of that decision she has chosen to stand down from the spokesperson roles she holds in the Party. More>>

ALSO:

Gordon Campbell: On The Government's Cosmetic Banking Reforms

The elephant in the room as the government carries out its latest bout of tinkerings with our banking practice is the extraordinary level of profit-taking still being extracted by the Australian Banking Gang from ordinary New Zealanders. Yes indeed, ... More>>

ALSO:

IPCA: Offensive Language, Misuse Of Pepper Spray

The Independent Police Conduct Authority has found that, following a pursuit in Auckland, a man was dealt with inappropriately and unprofessionally by a Police officer during his arrest. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels