The House of Representatives will convene on Friday to debate the Companies Amendment Bill 2020.
According to the Attorney General’s Chambers, the Bill seeks to amend the Companies Act 1995, No. 18 of 1995 to make it possible for an insolvent Company that is registered under the Act, or has a principal place of business or assets in Antigua and Barbuda, to undertake a programme of rehabilitation through the restructuring of the Debtor entity.
Presently, under the Companies Act 1995, a Company that finds itself in financial difficulties may be wound up either voluntarily or by the court (what is called involuntary winding up). Whether voluntarily or involuntarily, the end result is that the company ceases to exist. Although there is a possibility that a court may refuse to wind up a company and instead appoint a Receiver/Manager to manage the affairs of the Company for the benefit of some or all of its Creditors, this is not a usual step.
According to the explanatory memorandum from the drafters, the amendment will open up the option for a company to restructure it affairs whilst protecting itself from creditors until such time as it is able to meet its obligations to the creditors.
The amendment applies to companies that are insolvent.
The Bill will be tabled by Prime Minister and Minister of Finance the Hon. Gaston Browne.
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Liat – presumably all 3 readings of the amendment will happen Friday before shareholders meeting on Monday .
However, this amendment will be law for all companies in A&B.
Is chamber of commerce, ABHTA, Bar Assoc., Bankers Assoc, Unions etc. in full agreement with the draft wording?
No time for consultations if it needs to be law by end of business today.
It cannot become law until it is also passed by the Senate and then get the assent of the Governor General so everything cannot be done by Monday.
Height ah wickedness this sounds like. So you are saying companies can be mismanaged have creditors and cool cool they can put all debt aside until….tarl man! Until such time…could be infinitum!
The practice of running to parliament to change Amend create law, when its convenient can prove dangerous. In the case of the liat situation it may be useful now to attempt to fix things. It is perplexing that operations at liat were obviously illegal at best and went against norms and rules put in place to govern companies. Rules created for the protection of all parties concerned .What happens after liat. Companies responsibilities to its employees and creditors diminished and left open ended. Bad precedents.. one that will come back and bite. It’s liat today and fortunately for government the ability to change law at will may be available to them who is it going to be tomorrow. What happens to the next company that comes along with a board of directors and Management that operates illegally into solvency compromises its assets and run a mock ? The employees and creditors left out to dry again.Are we going down that road again. Another form of bandit slavery. Precedents….we ought to be very careful with that one.
The protection of workers from that sort of abuse is why our unions were created . I wonder what our great unions leaders would think.
A word to the wise.
So sorry to see that you have not clue what this amendment is all about. Just note it is something similar to chapter 11 that US companies enjoy before they can go into full bankruptcy. This amendment is long overdue. It will resuscitate financially strapped companies. And in any case when a company goes into bankruptcy creditors hardly get anything out of the force sale of the assets. And employees even worst. They usually are kept holding the empty bag. Once again look at the Stanford Assets. one would think with those billions spend in real estate in Antigua alone they would have no problem paying the staff. It took almost 10 years before they saw their severance. And not all employees seem to have been eligible for the payout. Persons working for the printery and the restaurant Sticky Wicket were left out in the cold. Half Moon Bay the same thing. There is no law that says that a company should set aside money for severance and that’s the main issue.
Yida, is allegedly operating, in this manner, To Infinitum And Beyond….
Hoteliers, must be smiling, and why not Da Vendors Too…trust and no pay! Bankrupt one! Change Name, start another?
Is it, or is this at, The CrossRoads, of No Returns on one’s years of Service, to a Company! Kinda interesting, and would this, apply to the Public Sector, as well?
Another Ill informed one. You guys have no shame to show how inept you are.
LIAT’s survival and the pride and dignity of all or most Antiguans demand no less!!!
You get the govt you deserve!!
Couldn’t agree with you more.
Yes the best in the region. We find solution for problems that others have already give up on.
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