Legal framework for insolvency improved

THE Ministry of Finance announced that His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam has consented for the introduction of the Insolvency (Amendment) Order, 2017; Insolvency (Winding Up) (Fees) Rules, 2017; and Insolvency (Judicial Management) Rules, 2017 which are aimed to further strengthen the insolvency legal framework in Brunei Darussalam and took effect starting yesterday.

The Insolvency (Amendment) Order, 2017 includes amendments which give greater creditors’ participation in any insolvency matters of a company. With these amendments, the nomination of a liquidator is to be approved by the creditors.

Also, the creditor has the right to access all information about insolvency proceedings relating to the company, including financial records of the company to ensure that the creditors are well-informed on the company’s financial position.

By further strengthening the creditors’ protection and participation in insolvency proceedings, it is hoped that it will improve the rate of recovery for the creditors of an insolvent company.