The Insolvency Practitioners Bill, which was first introduced to Parliament in 2010 by then Commerce Minister Simon Power, has been picked up by the new Commerce and Consumer Affairs Minister Kris Faafoi. The Minister has released a Supplementary Order Paper, containing amendments to the Bill. Included in those amendments is a system of registration of insolvency practitioners with an accredited body under a new, stand-alone Act. This replaces the previous negative licensing regime originally proposed in the Bill whereby the Registrar of Companies was to be given the power to prohibit individuals from providing insolvency services. Other amendments include granting the Court the power to make orders compensating parties for losses suffered as a consequence of an insolvency practitioner's failure to comply with the law, and extending the circumstances in which an insolvency practitioner will be disqualified from acting in relation to an insolvency engagement by reason of the practitioner's prior association with the company.
Submissions on the Insolvency Practitioners Bill and Supplementary Order Paper are sought from interested parties by Friday, 24 August 2018. You can find a copy of the Bill and Supplementary Order Paper, as well as information on making a submission to the Committee of the House here.