Insolvency

Insolvency

INSOLVENCY

The Insolvency Act which came into force on 1st June 2009 regulate bankruptcies of the individuals and insolvencies of companies.
 
It is a legislation which provides innovative tools to better manage companies during periods of distress.
 
The Insolvency law sets out alternative measures to bankruptcy such as restructuring, work outs and voluntary administration.
 
Services
  • Registration of documents for:- Liquidation, Receivership and Administration
  • Application for Registration as Insolvency Practitioner
  • Maintain Register of Insolvency Practitioners
  • Foster training to enhance performance of insolvency Practitioners
  • Entertain complaints against misconduct of Insolvency Practitioners
  • Maintain Register of Bankrupts
Insolvency Act 2009
List of Bankrupts
List of Insolvency Practitioners
Rules Governing the Performance and Conduct of Insolvency Practitioners
Regulations made under Insolvency Act 2009

INSOLVENCY PRACTITIONER

“Insolvency Practitioner”  means a person ordinarily resident in Mauritius holding office as:

  1.  Liquidator
  2.  Receiver /Manager
  3.  Administrator 
To Register as Insolvency Practitioner
  • Application for registration as an Insolvency Practitioner should be submitted via downloadable form available on our website.(refer to downloadable forms IS9)
  • Applicant should be qualified as per section 165 and 198 of Companies Act 2001. 
  • At least 3 years’ relevant post qualification experience in the area covered by the professional qualification is mandatory. 
  • Evidence of experience in managing Insolvency matters. 
  • To provide Business Registration Number in his own name
  • Professional indemnity insurance cover for not less than one million rupees is mandatory.
Insolvency Act 2009
List of Bankrupts
List of Insolvency Practitioners
Rules Governing the Performance and Conduct of Insolvency Practitioners
Regulations made under Insolvency Act 2009
MODES OF WINDING UP UNDER THE INSOLVENCY ACT 2009
  • Winding up Order made by court.
 
  •  Voluntary Winding up- Members Winding Up (solvent companies) and Creditors Winding Up (Insolvent companies). 
 
  • By way of a resolution of creditors at the watershed meeting (following administration).
Insolvency Act 2009
List of Bankrupts
List of Insolvency Practitioners
Rules Governing the Performance and Conduct of Insolvency Practitioners
Regulations made under Insolvency Act 2009
Statutory Documents Required For Liquidation/Administration /Receivership of Companies
Liquidation
  • Statement of Affairs & Declaration of Solvency. 
  • Shareholders’ resolution. 
  • Consent of Liquidator. 
  • Liquidator’s Account by Affidavit) 
  • Notice of final Meeting. For Creditors Winding up: Notice of Declaration of Insolvency, Creditors’ meeting and List of Creditors. 
  • Court Order for Winding up by Court 

Receivership

  • Notice of Appointment of Receiver/Manager & Consent of Receiver/Manager
  • First Report within 2 months (S 198)
  • Further Report every 6 months (S 199)
  • Notice of end of Receivership

Administration

  • Notice of Appointment/consent of Administrator 
  • Administrator’s Account 
  • Decisions at the Watershed Meeting (s240): 
                – resolve that the company execute a deed of company arrangement
                – resolve that the administration should end or 
                – appoint a liquidator
Insolvency Act 2009
List of Bankrupts
List of Insolvency Practitioners
Rules Governing the Performance and Conduct of Insolvency Practitioners
Regulations made under Insolvency Act 2009

DEED OF COMPANY ARRANGEMENT (DOCA)

Deed of Company Arrangement means the deed that is executed by a company and its creditors providing for payments towards the creditors’ debts.

Watershed Meeting

“watershed meeting” means the creditors’ meeting called by the administrator to decide the future of a company and, particular, whether the company and the creditors should execute a deed of company arrangement.

The Convening Period of the Watershed Meeting

  • 28 days after the date on which the administrator is appointed, and includes any period for which it is extended.

 

  • Court may extend the convening period.

 

  • Application to court for extension of the convening period should be made before the convening period expires.

 

  • The watershed meeting shall be held within 7 days after the end of the convening period or extended convening period, as the case may be.
Insolvency Act 2009
List of Bankrupts
List of Insolvency Practitioners
Rules Governing the Performance and Conduct of Insolvency Practitioners
Regulations made under Insolvency Act 2009

TIME FRAME TO DISSOLVE THE COMPANY

On the expiry of 3 months after the notice of the final meeting has been filed with the Director of Insolvency. (S 151 (5) of IA 2009)

The Procedures to file a complaint against an Insolvency Practitioner

  • The Director may receive representations from any person on the conduct and performance of an Insolvency Practitioner.

 

  • Within 7 days of receiving any such representation, the Director shall disclose the substance of that representation to the Insolvency Practitioner and seek comment on it.

 

  • Apply to court for prohibition order.
Insolvency Act 2009
List of Bankrupts
List of Insolvency Practitioners
Rules Governing the Performance and Conduct of Insolvency Practitioners
Regulations made under Insolvency Act 2009

THE INFORMATION IS CONTAINED IN THE PUBLIC REGISTER OF BANKRUPT

  • the person’s full name;

 

  • whether the person is currently bankrupt , or has been discharged from bankruptcy;

 

  • the bankruptcy number;

 

  • the person’ address;

 

  • the time and date of the adjudication by court;

 

  • the date, type, and conditions of discharge; and

 

  • annulment of Bank reply (conditional)
Insolvency Act 2009
List of Bankrupts
List of Insolvency Practitioners
Rules Governing the Performance and Conduct of Insolvency Practitioners
Regulations made under Insolvency Act 2009