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Timestamp: 2018-07-19 01:38:51
Document Index: 752722242

Matched Legal Cases: ['art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7', 'art 8', 'art 9']

Draft of the Insolvency Law
Location: Dubai Financial Services Authority (DFSA) > Consultation Papers > Past Papers > Consultation Paper No. 4 Insolvency Law
Schedule 1 Draft of the Insolvency Law
This draft law is published for consultation purposes only. The regulatory authority reserves the right to amend this draft at its sole discretion. The enactment of this draft law is conditional upon the official publication of a federal decree, the amendment of Dubai decree no. 3 of 2002, and the issuance of the law by the chairman of the DIFC
Insolvency Law of the Dubai International Financial Centre
1. To protect the assets and creditors of a company, prior to the onset of insolvency and whilst in liquidation.
2. To promote creditor agreement as a viable alternative to liquidation or administration.
3. To provide suitably qualified insolvency practitioners and to provide them with necessary assistance and protection from liability to perform their work.
4. To provide assistance to foreign courts in respect of insolvency proceedings.
Establishes the title, authority, application, enactment, commencement and interpretation of the Insolvency Law.
Part 2: Company Voluntary Arrangements
Provides for company voluntary arrangements binding on creditors, with the possibility of a moratorium during negotiations and, at the court's discretion, a stay on proceedings, winding up or administration once agreement has been reached.
Part 3: Receivership
Establishes receivership and administrative receivership and details the powers, duties, liabilities and interaction of receivers.
Part 4: Winding Up
Provides for the winding up of companies either voluntarily (by Members or by creditors) or involuntarily by the court; details the means of appointment and the powers of liquidators.
Part 5: Protection of Company Assets In Liquidation; Part 6: Overseas and Unregistered Companies; Part 7: Miscellaneous
Protect the assets and creditors of a company in liquidation by making certain preferences and Security transactions made by a company voidable prior to its insolvency and by requiring persons who mislead a company's creditors or engage in wrongful trading to reimburse and / or compensate the company. Provide assistance to the courts of the country of incorporation of an overseas company in foreign insolvency proceedings; provide for the winding up as an unregistered company of an overseas company which has been trading in the DIFC notwithstanding that it has already ceased to exist in its country of incorporation. Provide rules to assist liquidators and receivers to get in and realise company Property and to limit their liability.
Part 8: Supervision of Insolvency Practitioners
Provide the Regulatory Committee with authority to create rules on the qualifications required by insolvency practitioners.
Part 9: Protected Cell Companies
Provide for the application of the law to protected Cell companies
Please note, that although each draft is in near final form, it is still 'work in progress' and may therefore undergo ffirther amendments prior to enactment. However, it is anticipated that any amendments would be technical in nature rather than substantive and therefore the Regulatory Authority believes it is a sensible time to engage in consultation.