THE Ministry of Finance announced that His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam has consented to the introduction of the Insolvency Order, 2016 which is effective from March 1, 2016.
According to a press release, the Insolvency Order, 2016 is a new legislation which incorporates the winding up provisions relating to corporate insolvency under the Companies Act (Chapter 39).
The objective of this Order is to give greater emphasis on reviewing and rehabilitating companies that are facing temporary shortfall and operational difficulties.
Among the new features of the Order are the provisions on company voluntary arrangement which allow a company to make a proposal to its creditors which may include restructuring of debts or reorganising the company.
To complement this new provision, while winding up of a company, a new list of preferential payments will be paid in priority to all other unsecured debts.
Further information regarding the Insolvency Order, 2016 is available on www.mof.gov.bn or at www.business.gov.bn.
The hardcopy of the Insolvency Order, 2016 is available for sale at the Government Printing Department or alternatively it can be downloaded from the Attorney General’s Chambers website at www.agc.gov.bn.
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