Insolvency Law at Vanuatu
Vanuatu's insolvency framework is primarily governed by the Companies (Insolvency and Receivership) Act No. 3 of 2013, complemented by the Companies (Insolvency and Receivership) Regulation Order No. 111 of 2015. These laws establish procedures for both corporate and individual insolvencies, emphasizing structured liquidation processes and creditor protection. (Companies (Insolvency and Receivership) Regulation Order No.111 of 2015 | Vanuatu Financial Services Commission)
⚖️ Key Features of Vanuatu's Insolvency Law
1. Types of Insolvency Proceedings
Voluntary Liquidation: Initiated by a company's directors or shareholders when the company is solvent but chooses to wind up its affairs. (Liquidation)
Compulsory Liquidation: Commenced by a court order, typically following a petition by creditors or the company itself when it is unable to pay its debts.
Receivership: Appointed by secured creditors to take control of a company's assets in the event of default, aiming to recover owed amounts.
2. Liquidation Process
Appointment of Liquidator: A liquidator is appointed to manage the winding-up process, including asset realization and distribution to creditors.
Statement of Affairs: Company directors are required to submit a statement detailing the company's financial position to the liquidator. (Liquidation)
Final Report: Upon completion of the liquidation, the liquidator prepares a final report and distributes any remaining assets to shareholders. (Delivery of document held by secured creditor)
3. Receivership
Role of Receiver: A receiver is appointed to manage and sell the company's assets to satisfy the claims of secured creditors.
Powers of Receiver: Receivers have the authority to take possession of assets, sell them, and distribute proceeds according to the priority of claims.
4. Cross-Border Insolvency
Recognition of Foreign Proceedings: Vanuatu's legal framework includes provisions for the recognition and assistance of foreign insolvency proceedings, facilitating international cooperation.
🏛️ Relevant Legislation
Companies (Insolvency and Receivership) Act No. 3 of 2013: The primary legislation governing insolvency proceedings in Vanuatu. (Companies (Insolvency and Receivership) Act No.3 of 2013 | Vanuatu Financial Services Commission)
Companies (Insolvency and Receivership) Regulation Order No. 111 of 2015: Supplementary regulations providing detailed procedures and requirements for insolvency processes. (Companies (Insolvency and Receivership) Regulation Order No.111 of 2015 | Vanuatu Financial Services Commission)
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