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{
    "id": 575405,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/575405/?format=api",
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    "content": "The object and purpose of this Bill is to simplify the process of liquidation and re- organizing businesses which, in one way or another, have failed and in turn create an efficient way of re-organizing those businesses that have failed, deal with the process of liquidation and, above all, reduce the time in which the process of insolvency or the failed businesses can take in order to come back. I will just highlight the main features of this Bill. It is a very voluminous Bill. At the outset, I would like to thank the Departmental Committee on Justice and Legal Affairs led by its chairperson, Hon. Chepkong’a - in which you, Hon. Temporary Deputy Speaker, is also a Member - for taking time to take the stakeholders through and to find time to make sure that this Bill is aligned to the Constitution and international best practices in as far as insolvency is concerned. Part I deals with preliminary provisions of the Bill which are very unique and general. That happens with each and every Bill that comes to the House. Part II of the Bill, which includes Clauses 4 to 11, introduces a concept of insolvency practitioners - that we must have men and women who are professionally trained to deal with matters of insolvency. For the first time we have experts. Not any Tom, Dick, Harry or quack can go into the process of insolvency. This Bill in Part II is setting up insolvency practitioners. It provides for the authorization of those insolvency practitioners, how they will be prescribed, their qualifications and the process in which a person must apply in order to become an official receiver for any authorization. That section deals with who gives the notice of authorization accordingly. Basically, Part II deals with the element of insolvency practitioners. Part III deals with the rules for making bankruptcy orders. It is making very clear what the rules of the game are in declaring an entity or a business bankrupt. They involve bankruptcy orders in respect of natural persons for the administration of estates in line with the benefits of the creditors. This section deals with the nature of the bankruptcy and related processes. It provides for the effects of the bankruptcy on a person, the alternatives such a person may have if he wants to avoid bankruptcy, as well as circumstances under which that person must also adjudicate that bankruptcy. It also outlines the process of adjudication by a court of law on the application of any debtor or creditor. Part IV of the Bill - that is between Clauses 303 to 361 - provides for alternatives that enable persons who are insolvent to restructure their debts and avoid bankruptcy. That Part deals with how to avoid bankruptcy and restructure your debts so that your business is not declared bankrupt. This Part also sets out circumstances under which the debtor is enabled to enter into a voluntary arrangement with the creditors. It gives the option of an out-of-court settlement for debtors and creditors to go into a voluntary agreement in order to save a business from collapse due to bankruptcy. Part IV also provides a summary installment order. If you agree between a debtor and creditor to save the business, it gives you a summary installment order which can be made in respect of an insolvent debtor. This is a natural provision where persons state how they are going to restructure their businesses and pay creditors. Hon. Temporary Deputy Speaker, Part V Clauses 362 to 380, deals with the administration of the estate of deceased persons who are insolvent. This part specifically gives functions to the High Court in respect of how administration of such an estate can be managed. It The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}