The Ministry of Finance (MoF) is inviting suggestions from different stakeholders and the insolvency industry to fortify theinsolvency regime.

This was announced yesterday by Hajah Rena Azlina binti Dato Paduka Haji Abdul Aziz, the Acting Director at the Registry of Companies and Business Names (ROCBN), during her opening remarks at a talk on corporate insolvency at the Ministry of Finance.

She spoke on the Insolvency Order 2016, stating, "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, she said, "are the provisions on company voluntary arrangements that allow a company to make a proposal to its creditors, which may include a restructuring of debts or reorganising the company.

"A good insolvency regime facilitates the orderly and efficient distribution of assets from a business to its stakeholders. The order provides a good insolvency regime that may permit a business undergoing financial distress to restructure its debts and continue operate competitively."

Even a fundamentally sound and commercially viable business, she said, "can sometimes encounter financial difficulties, and a modern insolvency regime can facilitate the special financial arrangements necessary for such businesses to be saved. When businesses can be saved, jobs can be saved. The economy as a whole can benefit."

She cited a World Bank report, which showed significant improvement in Brunei Darussalam's ranking on the Resolving Insolvency index, by jumping from 97th place out of 190 economies in 2016 to 57th in 2017.

"The Resolving Insolvency was measured by the recovery rate and strength of the insolvency framework index," said Hajah Rena Azlina.

Presentations were then given on the topic of corporate insolvency, by the Law Society and Sarjit Singh from Singapore. Afterwards, there was a discussion session with stakeholders.

The invited speaker, Sarjit Singh who is the former Official Receiver from the Singapore Insolvency Office, in the session spoke about the organisation of the Official Receiver in Singapore as well as the voluntary arrangement/judicial management and liquidator's role in the realisation of assets.

Siti Rozaimarlenny binti Data Seri Laila Jasa Haji Abdul Rahman also gave a brief presentation on Corporate Insolvency in Brunei Darussalam from a practitioner's perspective. The session was facilitated by officials from the ROCBN.

Among the attendees were representatives from the Prime Minister's Office, the Attorney General's Chambers, the judiciary, the Autoriti Monetari Brunei Darussalam (AMBD), the Brunei Association of Banks, the Brunei Institute of Chartered Public Accountants (BICPA), the Brunei Law Society, DARE (Darussalam Enterprise) and corporate service providers.

More information regarding corporate insolvency can be obtained through www. mofgov.bn or at www.business.gov.bn.

Source:
@BRUDIRECT.COM

by BruDirect.com

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