Insolvency Act

01

Purpose and legislative effect

“The Cabinet Secretary may, by notice in the Gazette, appoint dates when provisions of the Act come into operation; different provisions may have different commencement dates, and any provision not brought into force within nine months after publication comes into force at the end of that period.”

The Cabinet Secretary may, by notice in the Gazette, appoint dates when provisions of the Act come into operation; different provisions may have different commencement dates, and any provision not brought into force within nine months after publication comes into force at the end of that period. Section 2(3) defines who counts as a 'member of the family' for the Act by listing specific relations, and states that for an adopted child the adopted parents are included. Sets out the Act's objects: to provide a framework for administering insolvent estates (natural persons, unincorporated entities, companies and other bodies corporate); to enable insolvent persons and entities to continue as going concerns to meet creditor claims or achieve better outcomes than bankruptcy or liquidation; and to provide an orderly system for adjudging bankrupt and for liquidating irredeemable entities and distributing assets for the benefit of creditors. The Official Receiver may revoke an insolvency practitioner’s authorisation for specified grounds; revocation can occur at the holder’s request or with the holder’s consent; the Official Receiver must not revoke (except at request/consent) without giving the holder an opportunity to be heard; a revocation does not take effect until the appeal period has expired or any lodged appeal is finally determined or withdrawn. A person whose application for authorisation as an insolvency practitioner is refused, or whose authorisation is revoked (except at their request or with their consent), may appeal to the Court; appeals must meet time and form requirements. The Official Receiver is entitled to be served and to appear. The Court must quash or confirm the Official Receiver's decision and may make ancillary orders including costs.