Insolvency Law at Solomon Islands
The insolvency framework in the Solomon Islands is primarily governed by the Companies (Insolvency and Receivership) Act 2009. This legislation outlines procedures for dealing with insolvent companies, including liquidation and receivership. Additionally, the Administration of Insolvent Estates Regulations 1996 provide guidelines for managing the estates of deceased individuals with outstanding debts. (Administration of Insolvent Estates Regulations 1996 (L.N. 28 of 1996). | UNEP Law and Environment Assistance Platform)
⚖️ Key Provisions of the Companies (Insolvency and Receivership) Act 2009
1. Voluntary Liquidation
Initiation: Shareholders or directors may resolve to wind up the company voluntarily.
Process: A liquidator is appointed to manage the company's affairs, including asset distribution and creditor settlements.
2. Compulsory Liquidation
Court-Ordered: Creditors or the company itself may petition the court for liquidation if the company is unable to pay its debts.
Appointment: The court appoints a liquidator to oversee the liquidation process.
3. Receivership
Appointment: A receiver may be appointed by a secured creditor to take control of specific assets or the entire company to recover debts.
Duties: The receiver manages the company's assets and operations to satisfy the secured debt. (LAW701 Liquidation and Insolvency 2024.pptx - LAW701 COMPANY LAW Topic: Companies Insolvency and Receivership INTRODUCTION Insolvency is a - College Sidekick)
4. Powers and Duties of Liquidators and Receivers
Liquidators: Responsible for collecting and distributing assets, investigating company affairs, and reporting to creditors.
Receivers: Focus on securing and realizing assets to repay secured debts, with limited authority over the company's broader operations. (LAW701 Liquidation and Insolvency 2024.pptx - LAW701 COMPANY LAW Topic: Companies Insolvency and Receivership INTRODUCTION Insolvency is a - College Sidekick)
🏛️ Administration of Insolvent Estates Regulations 1996
These regulations, made under the Wills, Probate and Administration Act, establish the priority of expenses when managing the estate of a deceased person who has outstanding debts. They also address the rights of personal representatives in relation to debts owed to them personally. (Administration of Insolvent Estates Regulations 1996 (L.N. 28 of 1996). | UNEP Law and Environment Assistance Platform)
For detailed information, you can access the full text of the Companies (Insolvency and Receivership) Act 2009 and the Administration of Insolvent Estates Regulations 1996 through the Solomon Islands Government's official business registry website.
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