Insolvency Law at Seychelles
Seychelles' insolvency framework is primarily governed by the Insolvency Act, 2013, which provides comprehensive provisions for both individual and corporate insolvency proceedings. The Act encompasses various aspects, including bankruptcy, winding up of companies, and cross-border insolvency matters.
🏛️ Legal Framework
Insolvency Act, 2013: The principal legislation governing insolvency proceedings in Seychelles. It covers individual bankruptcy, corporate winding up, and cross-border insolvency. (Insolvency Act, 2013 - SeyLII)
⚖️ Key Features of the Insolvency Act, 2013
1. Bankruptcy (Part II)
Declaration of Bankruptcy: An individual may be declared bankrupt by a court order upon petition by the individual or creditors. (Insolvency Act, 2013 - SeyLII)
Creditor’s Petition: A creditor may apply for a bankruptcy order if the debtor owes SCR 25,000 or more, and certain grounds exist, such as failure to comply with a bankruptcy demand or departure from Seychelles with intent to defeat or delay payment. (Insolvency Act, 2013 - SeyLII)
Offences by Bankrupt: The Act outlines offences related to debts, fraudulent trading, and concealment of assets, with penalties including fines and imprisonment. (Insolvency Act, 2013 - SeyLII)
2. Winding Up of Companies (Part IV)
Modes of Winding Up: A company may be wound up by an order of the court or voluntarily. (Insolvency Act, 2013 - SeyLII)
Grounds for Winding Up by the Court: Includes inability to pay debts, directors' misconduct, and just and equitable grounds. (Insolvency Act, 2013 - SeyLII)
Provisional Liquidator: The court may appoint a provisional liquidator if there are reasonable grounds to believe the company is unable to pay its debts or assets are at risk. (Insolvency Act, 2013 - SeyLII)
Fraudulent Trading: Directors or officers found to have carried on business with intent to defraud creditors may be held personally liable for the company's debts. (Insolvency Act, 2013 - SeyLII)
3. Cross-Border Insolvency (Part VI)
Foreign Proceedings: The Act provides for the recognition and assistance of foreign insolvency proceedings, facilitating cooperation between courts and insolvency representatives. (Insolvency Act, 2013 - SeyLII)
Concurrent Proceedings: Outlines procedures for coordinating Seychelles insolvency proceedings with foreign proceedings to ensure fair and efficient administration of the debtor's assets. (Insolvency Act, 2013 - SeyLII)
📌 Conclusion
The Insolvency Act, 2013 establishes a structured legal framework for addressing insolvency in Seychelles, encompassing individual bankruptcy, corporate winding up, and international cooperation in cross-border insolvency matters. Its provisions aim to balance the interests of debtors and creditors while promoting fairness and transparency in insolvency proceedings.
RELATED Blog
0 comments