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


Law provides new insolvency options for companies

27 October 2006

Law provides new insolvency options for companies

Creditors and directors of failing companies will in future have more flexible and effective methods to deal with financial distress under changes to New Zealand's insolvency laws passed by Parliament today, Commerce Minister Lianne Dalziel says.

"A key feature of the Bill is the adoption of a voluntary administration regime for companies in financial distress, as a potential alternative to liquidation. The new process will provide a 'breathing space' for administrators to assess the company's viability to continue trading before deciding whether to rehabilitate the company by entering into a deed of company arrangement with the creditors, or enter into liquidation," Lianne Dalziel said.

Lianne Dalziel said that the Australian model had seen increased returns to creditors and she was confident that similar benefits would occur here.

Other major provisions restrict the abuse of phoenix company structures by directors of failed companies intending to defeat the legitimate interests of creditors, and improve mechanisms for dealing with cross-border insolvencies.

The Bill repeals and replaces the Insolvency Act 1967, amends insolvency provisions of the Companies Act 1993 and creates new legislation on cross-border insolvency. The legislation will be implemented later next year once the regulations are in place.

Earlier this month Lianne Dalziel also released a discussion document to further explore industry attitudes to regulation of insolvency practitioners after submissions to the Bill overwhelmingly supported the establishment of a regulatory framework. Submissions close 2 February 2007.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Lessons From Australia’s Election

Australia’s new PM Anthony Albanese faces an obvious dilemma, barely before he gets his feet under the desk. Australia is the world’s leading exporter of coal. Will the new Labor government prioritise the jobs for Queensland/NSW workers in its mining-dependent communities - or will Labor start to get serious about climate change, and risk the inevitable political backlash from making a major shift into renewables..?


Australian Election: Prime Minister Congratulates Anthony Albanese
Prime Minister Jacinda Ardern has congratulated Anthony Albanese and the Australian Labor Party on winning the Australian Federal election, and has acknowledged outgoing Prime Minister Scott Morrison... More>>

Government: Helps Supermarket Shoppers Get A Fair Deal
Urgent Budget night legislation to stop major supermarkets blocking competitors from accessing land for new stores has been introduced today, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>

Budget 2022: A Secure Future In Difficult Times
Budget 2022 will help build a high wage, low emissions economy that provides greater economic security, while providing support to households affected by cost of living pressures... More>>


Trade: Prime Minister To Visit United States
Prime Minister Jacinda Ardern is leading a trade mission to the United States this week as part of the Government’s reconnection strategy to support export growth and the return of tourists post COVID-19... More>>

National: Jacqui Dean To Retire From Parliament In 2023

Waitaki MP Jacqui Dean has announced that she will not be seeking re-election at the 2023 election. “I have advised the President and Leader of the National Party that I have decided not to put my name forward... More>>

Classification Office: Following Decision To Ban Manifesto The Buffalo Mass Shooting Livestream Is Now Banned
The livestream video of yesterday’s mass shooting in the United States has now been banned, Acting Chief Censor Rupert Ablett-Hampson announced this morning. The decision follows on from his decision yesterday to call in and ban the ‘manifesto... More>>




InfoPages News Channels