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{
    "id": 42348,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/42348/?format=api",
    "text_counter": 455,
    "type": "speech",
    "speaker_name": "Mr. Wako",
    "speaker_title": "The Attorney-General",
    "speaker": {
        "id": 208,
        "legal_name": "Sylvester Wakoli Bifwoli",
        "slug": "wakoli-bifwoli"
    },
    "content": "Mr. Deputy Speaker, Sir, only about three weeks ago, I had the privilege of moving The Companies Bill. While doing so, I mentioned that the current Companies Act is the same word by word as the Companies Act that was there in the United Kingdom in 1949. The debate that I am now moving is going to bring together the liquidation and winding up sections which were in The Companies Act and The Bankruptcy Act. The Bankruptcy Act that we have applies to individuals and, obviously, the liquidation and winding up provisions, under The Companies Act, apply to companies. The Bankruptcy Act that is currently in our statute books came into force on 3rd September, 1930. That is about 81 years ago, and I doubt whether there is anybody in this House who is near that age. There have been dismal amendments from time to time but, obviously, it is not up to date. So, this Bill becomes important. It brings together the bankruptcy of the individual and the winding up of a company, and updates the law to bring it to the levels that we have today. Mr. Deputy Speaker, Sir, this is another Bill which emanated from the task force on Companies, Insolvencies and Partnerships, which I appointed in the 1990s and which, as I stated for The Companies Bill, was composed purely of the stakeholders in the industry. The task force made a recommendation which resulted in The Insolvency Bill. That recommendation was reviewed further by the Law Reform Commission, and the Ministry of Justice, National Cohesion and Constitutional Affairs, who, again, called stakeholders’ workshops and so on. So, this Bill has been refined to a level where I would gladly recommend it to this House. Part II of the Bill introduces the new concept of “insolvency partnerships.” You will get the definition of this in Clause 4. Part III of the Bill deals with bankruptcy and related provisions. I have just been asked what the definition of “bankruptcy” is. You will find that in Clause 21. At page 850, there is what we call “Acts of Bankruptcy”. I may just read a few of them; we have Clause 21(1), which says:- “21(1) a debtor commits an act of bankruptcy if- (a) the creditor has obtained a final judgement or a final order against a debtor for at least Kshs50,000 and execution of the judgement or order has not been stayed by the court---”"
}