The Commerce and Consumer Affairs Minister, Jacqui Dean, has released the second and final part of the insolvency law review by the Insolvency Working Group.
“The Insolvency Working Group was established in November 2015 to examine aspects of corporate insolvency law, and presented its first report in July 2016,” Ms Dean says.
“The working groups’ second report focuses on two important areas, voidable transactions and whether the procedures for dealing with the liquidation of Ponzi schemes can be improved.
“The working group recommends a number of changes to the voidable transaction regime that it believes would better balance the competing interests of individual creditors and all creditors.
“I am releasing this report for consultation so I can hear from all interested parties whether the Insolvency Working Group’s recommendations would strike the right balance between these two important but conflicting objectives,” Ms Dean says.
The working group also recommends providing preferential status to gift card and voucher holders in an insolvency event.
One of the recommendations of the Insolvency Working Group’s first report was to introduce a Director Identification Number (DIN).
“I am also releasing a discussion document on DINs today for public consultation. I am interested in hearing whether people think a DIN should be introduced,” says Ms Dean.
Consultation on both the Insolvency Working Groups recommendations and the Director Identification Numbers will run until 23 June 2017.
You can read the full Working Groups report, the DIN discussion documents and make submissions here: http://www.mbie.govt.nz/info-services/business/business-law/insolvency-law-working-group/report-no-2-voidable-transactions-ponzi-schemes-other-corporate-insolvency-matters