Chapman Tripp has taken the opportunity to comment on the Select Committee's proposed amendments to the Insolvency Practitioners Bill.
The report proposes registration, but the criteria for registration are essentially the same as the existing qualification criteria in the Companies Act. This minimal qualification criteria will set the insolvency profession apart from all other registered professionals.
The chief concern raised by Chapman Tripp is that, unlike lawyers and accountants in particular, there will be no minimum competence,education or experience criteria, no professional disputes or complaints process and no requirement for a professional body to set rules of conduct. Our concern is that registration will give the public an impression of official approval when in fact only very modest criteria need to be fulfilled. This may give false comfort to creditors and owners of insolvent businesses. Indeed, it may be positively misleading.
Chapman Tripp's letter to the Ministry of Economic Development covers the following points:
- the overall policy of registration
- the scope of the Bill and whether it should become a stand-alone Act (in part)
- Companies Act s 280
- Companies Act s 316F, and
- Companies Act s 395.
Please click on the link above to view Chapman Tripp's letter to the Ministry of Economic Development.
The information in this article is for informative purposes only and should not be relied on as legal advice. Please contact Chapman Tripp for advice tailored to your situation.