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{
    "id": 575509,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/575509/?format=api",
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    "content": "adjudged bankrupt. This means that there will be no need for a receiving order and one will head straight upon the court issuing that order. This law will ensure that the company, or the person, will be protected to ensure that the assets of the company are not destroyed in the process, as has happened in many companies. As it is at the moment, once a company is declared insolvent, you have all the “vultures” coming into the company with the intention of ensuring that they suck life out of that company by ensuring that the company is completely destroyed. They are there just to make money for themselves, to ensure that they are paid good fees and not to ensure that the company comes back to business. We have seen many companies where the appointed bankruptcy practitioners ensure they go straight to their graves. We know many companies where the people receiving them have continued doing so from year to year. What this law ensures is that when a company is declared insolvent and is put into receivership, the insolvency practitioners are given a timeline. They will have 12 months within which to ensure that the company is resuscitated. It is not going to be under receivership endlessly. The insolvency practitioner is not allowed, in this law, to continue endlessly sucking the finances of that company. The Bill introduces alternatives to bankruptcy as mentioned by the Leader of the Majority Party. I do not wish to repeat those instances that were mentioned. Once a bankruptcy order is issued against a person, the person is restricted as to the business activities he/she can undertake. This is meant to protect the public from trading with insolvent persons. As it is right now, we do not know who is insolvent. Many times, people who are insolvent continue to do business. They just move from one company to another. They have caused so many problems and troubles to many companies and microfinance companies. I know of one individual. I do not want to mention his name because he could end up being in this House. He kept on closing one company and opening another one. He is insolvent but he misleads the public that he has a good company. He caused too much trauma to many Kenyans. This law ensures that people who have been declared insolvent do not walk around like they are free people when their status is known. One of the things that this law introduces is the fact that once you are declared insolvent, your name will be published on the website of the Official Receiver and the courts will also put your name on their website. This will ensure that if you want to trade with somebody, you first check on the website of the Official Receiver to see whether you are trading with a person who has the capacity to do business with you. This Bill ensures that the courts themselves place the persons who are insolvent on their website. We are introducing e-commerce in this particular law. The Bill also introduces a provision in Clause 19 of expediting creditor’s application, and creditors will not have to wait to see if the value of the debtor’s property can significantly reduce within 21 days. If there is the danger of the property of someone who has been declared insolvent reducing in value, or losing value, this expedited process will ensure that the process kicks in fairly quickly, so that property is preserved."
}