insolvency act singapore

The amendments, if enacted, have the potential to radically overhaul the existing insolvency and restructuring regime in Singapore. An Act to amend and consolidate the written laws relating to the making and approval of a compromise or an arrangement with the creditors of a company or an individual, receivership, corporate insolvency and winding up, individual insolvency and bankruptcy, and the public administration of insolvency, to provide for the regulation of insolvency practitioners, to provide for connected matters, to repeal the Bankruptcy Act (Chapter 20 of the 2009 Revised Edition) and to make consequential and related amendments to certain other Acts. 50) and the Bankruptcy Act (Cap. The key statute governing insolvency and corporate rescue mechanisms in Singapore is the Companies Act. The unprecedented spread and severity of the COVID-19 pandemic, together with closures and restrictions imposed by the safe distancing measures, has resulted in significant impact on businesses. History of Singapore’s insolvency regime The Insolvency, Restructuring and Dissolution Act 2018 (the “IRDA”) was passed in Parliament on 1 October 2018 and is expected to come into force during 2020. Some of its latest highlights include: Singapore Corporate Access (CorpPass) is the only login method for online corporate transactions with the government. Insolvency, Restructuring and Dissolution Act 2018, Please check the legislation timeline to ensure that you are viewing the correct legislation version. The Insolvency, Restructuring and Dissolution Bill was passed in the Parliament on 1 October 2018 and assented to by the President on 31 October 2018. The second element may be difficult to prove but the Insolvency, Restructuring and Dissolution Act 2018 has provided a statutory presumption of insolvency. History of Singapore's insolvency regime. 294 Proving of debts under debt repayment scheme, 296 Priority of debts and interest on debts, 297 Payment and distribution of moneys under debt repayment scheme, 299 Certificate of inapplicability of debt repayment scheme, 300 Certificate of failure of debt repayment scheme, 301 Certificate of completion of debt repayment scheme, 302 Revocation of certificate of completion of debt repayment scheme, 304 Appeal Panel and Appeal Panel Committee, 305 Validity of things done under debt repayment scheme, 307 Persons who may make creditor’s bankruptcy application, 308 Persons who may make debtor’s bankruptcy application, 310 Conditions to be satisfied in respect of debtor, 312 Presumption of inability to pay debts, 313 Where applicant for bankruptcy order is secured creditor, 315 Power of Court to stay or dismiss proceedings on bankruptcy application, 316 Proceedings on creditor’s bankruptcy application, 317 Proceedings on bankruptcy application by nominee or creditor bound by voluntary arrangement, 318 Proceedings on debtor’s bankruptcy application, 319 Consolidation of bankruptcy applications, 320 Power to dismiss application against some respondents only, 321 Power to change conduct of proceedings, 322 Continuance of proceedings on death of debtor, 325 Power to stay proceedings against person or property of debtor, 326 Commencement and duration of bankruptcy, 328 Restrictions on dispositions of property by bankrupt, 329 Description of bankrupt’s property divisible amongst creditors. The Singapore Ministry of Law has published for public consultation amendments to the Singapore Companies Act (Cap 50). 240 Power of Court to assess damages against delinquent officers, etc. In summary, the Act brings into force temporary measures, which: essentially suspend contractual obligations under a range of scheduled contracts The Insolvency, Restructuring and Dissolution Act 2018, (Act No.40 of 2018, the “Act”) , which came into force on 30 July, marks, for now at least, the final stage in what has been a far-reaching overhaul of Singapore’s insolvency and debt restructuring regime. Our Management. 22 Bankruptcy and Insolvency Act 1985 (Canada), section 65.1 and Companies’ Creditors Arrangement Act 1985 (Canada), section 34. 50); “contributory” has the meaning given by section 4(1) of the Companies Act; “corporation” has the meaning given by section 4(1) of the Companies Act; “creditors’ committee”, in relation to a bankruptcy, means a committee appointed under section 331; “foreign company” has the meaning given by section 4(1) of the Companies Act; “insolvency practitioner’s licence” means a licence granted under section 51; “liability” means a liability to pay money or money’s worth, regardless whether such liability is present or future, certain or contingent or of an amount that is fixed or liquidated or that is capable of being ascertained by fixed rules or as a matter of opinion, and includes any such liability arising —, as a result of a breach of trust by the person liable; or. In its Press Release of 10 September 2018, the Ministry of Law emphasised the desirability of common principles and practices across personal and corporate insolve… 2 In addition to consolidating the insolvency laws into a single enactment, the Omnibus Bill makes a number of substantive changes to Singapore insolvency and restructuring law. ipso facto clauses). 5 Amendment of section 35 2. It brings to fruition the most fundamental reform process, beginning in 2017, to Singapore’s insolvency laws since independence. The consolidation of all personal and corporate insolvency and debt restructuring legislation into a single statute, along with other legislative changes, seeks to further strengthen Singapore’s position as an international debt restructuring hub. Bankruptcy. A Singapore Government Agency Website. Building on the Companies Act amendments in 2017 which enhanced Singapore’s corporate rescue and restructuring framework, this legislation will benefit businesses experiencing financial difficulties as well as their creditors, create new opportunities for insolvency professionals (including lawyers and accountants), distressed debt funds and financial institutions, and further strengthen Singapore as an international centre for debt restructuring. 103 Suspension of requirements to call annual general meeting and to file annual returns and audited accounts, 105 Information to be given by judicial manager, 108 Consideration of proposals by creditors’ meeting, 110 Duty to manage company’s affairs, etc., in accordance with approved proposals, 112 Duty to apply for discharge from judicial management, 113 Application to Court for approval of remuneration and expenses of former judicial manager, 114 Order of priority for expenses of judicial manager and interim judicial manager, 115 Protection of interests of creditors and members, 116 Trade union representation on behalf of members who are creditors and employees of company, 117 Application of certain provisions in Companies Act and Part 5 to company under judicial management, 118 Transition from judicial management to winding up, 119 Modes of winding up and application of this Division, 120 Government bound by certain provisions, 121 Liability of present and past members as contributories, and unlimited liability of directors, 123 Contributories in case of death or bankruptcy of member, 125 Circumstances in which company may be wound up by Court, 128 Powers of Court on hearing winding up application, 129 Power to stay or restrain proceedings against company. Restriction on certain contractual rights that are triggered upon the commencement of restructuring proceedings (i.e. 407 Concealment of books and papers; falsification, etc. Singapore’s existing insolvency and restructuring legislative framework is mainly contained in the Bankruptcy Act (with respect to personal insolvency) and the Companies Act (with respect to corporate insolvency), and the related regulations. Enlarging the range of causes of action which may be funded by third parties, specifically certain officeholder avoidance actions, which may otherwise not be pursued due to lack of funds. What is a Bankruptcy or Corporate Insolvency Search in Singapore? This regime requires insolvency practitioners to uphold professional standards when performing insolvency and debt restructuring work in Singapore. It brings to fruition the most fundamental reform process, beginning in 2017, to Singapore’s insolvency laws since independence. This Act is the Insolvency, Restructuring and Dissolution (Amendment) Act 2020 and comes into operation on a date that the Minister appoints by notification in the Gazette. 155 Claims of creditors and distribution of property, 156 Inspection of books and papers by creditors and contributories, 157 Power to arrest absconding contributory, director or former director, 158 Delegation to liquidator of certain powers of Court, 160 Circumstances in which company may be wound up voluntarily, 161 Provisional liquidator and commencement of voluntary winding up, 165 Duty of liquidator to call creditors’ meeting, and alternative provisions as to annual meetings, in case of insolvency, 168 Liquidator’s right to request for statements of concurrence, 171 Powers of provisional liquidator prior to creditors’ meeting, 178 Power of liquidator to accept shares, etc., as consideration for sale of property of company, 179 Annual meeting of members and creditors, 181 Application to Court to have questions determined or powers exercised, 182 No liquidator appointed or nominated by company, 184 Limitation on right to wind up voluntarily, 185 Summoning, proof of notice, and quorum of meetings, 186 Power to stay or terminate winding up, 187 Arrangement when binding on creditors, 188 Books to be kept by liquidator, control of Court over liquidators, and delivery of property to liquidator, 189 Powers of Official Receiver where no committee of inspection, 190 Appeal against decision of liquidator, 191 Notice of appointment and address of liquidator, 194 Notification that company is in liquidation, 195 Books and papers of company and liquidator, 196 Investment of surplus funds on general account, 197 Unclaimed assets to be paid to Official Receiver, 198 Outstanding assets of company wound up on grounds of national security or interest, 199 Expenses of winding up where assets insufficient, 200 Resolutions passed at adjourned meetings of creditors and contributories, 201 Meetings to ascertain wishes of creditors or contributories, 202 Special commission for receiving evidence, 205 Transfer or assignment of company’s property to trustees, 206 Restriction of rights of creditor as to execution or attachment, 207 Duties of bailiff as to goods taken in execution, 208 Power of Court to declare dissolution of company void, 209 Early dissolution of company administered by Official Receiver when Official Receiver is liquidator, 210 Early dissolution of company administered by liquidator other than Official Receiver, 211 Application for order in early dissolution of company administered by Official Receiver or liquidator, 212 Official Receiver to act as representative of defunct company in certain events, 213 Outstanding assets of defunct company to vest in Official Receiver, 214 Disposal of outstanding interests in property, 215 Liability of Official Receiver and Government as to property vested in Official Receiver, 218 Description of debts provable in judicial management or winding up, 226 Relevant time under sections 224 and 225, 229 Avoidance of certain floating charges, 232 Court order vesting disclaimed property, 233 Order under section 232 in relation to leaseholds, 234 Offences by officers of companies in judicial management or in liquidation, 235 Inducement to be appointed judicial manager or liquidator, 236 Penalty for destruction, falsification, etc., of books, 237 Liability where proper accounts not kept, 238 Responsibility for fraudulent trading. 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