Expert Outlines Plans For Reform Of Mauritian Insolvency Laws

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

14 June 2004

In a recent interview with Business Magazine, adviser to the Mauritian government, Professor Peter McKenzie stressed the importance of reforming the jurisdiction's insolvency laws, and explained the main thrust of the Insolvency Bill currently under negotiation.

Asked to outline the reasoning behind the planned reform, Professor McKenzie revealed that when the Companies Act was adopted in 2001, changes to the provisions of company insolvency were not included, meaning that they must now be addressed separately.

He went on to add Mauritian individual insolvency system is long overdue for an update, as the Bankruptcy Act, which provides the framework for dealing with such situations, dates back to 1886.

Explaining the purpose of the new Insolvency Bill, the government adviser told Business Magazine that:

"I suppose the main thrust will be to update the law so as to make the provisions work better, to try and provide a way of rehabilitating business without forcing it into bankruptcy and providing for (a) more cost effective and efficient regime. The bill will help to get money returned to creditors through customs authorities and will assist in releasing debtors in the community more quickly."

Professor McKenzie also underlined the importance of an effective insolvency system with regard to the stability of a country's economic and financial system, and expressed his support for the proposed establishment of a commercial court in the jurisdiction.

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