House Of Representatives Passes Insolvency Bill

The House of Representatives on Tuesday passed the new Insolvency Bill, repealing the current Bankruptcy Act and creating a legal environment for the use of insolvency laws, the Jamaica Observer reported. Jamaican law on bankruptcy and insolvency is currently contained in two pieces of legislation: the Bankruptcy Act, which covers personal and individual insolvency (inability to pay debt); and the Companies Act, which contains provisions to deal with the winding up of insolvent corporate bodies. The new act consolidates those provisions. Anthony Hylton, the minister of Industry, Investment and Commerce who piloted the bill through the House, said that the cooperation of the Opposition in Parliament in efforts to pass the bill was “indispensable”. He noted that the process was initiated under the previous Government that had initiated a review of the bankruptcy law to determine reforms needed and create a unified code for bankruptcy and corporate insolvency. He said that the bill would help to create an insolvency framework that would increase direct investments and encourage greater risk taking. He added that a modern insolvency law is essential for financial stability and efficiency. Read more.