Parliament passes business recovery, insolvency Bill

  • National Assembly
Luanda – A draft Law on the Legal Regime of Business Recovery and Insolvency was approved by the Specialty Commissions of the National Assembly on Thursday in Luanda.

The eighteen-article document was approved with 26 votes in favour, none abstentions and none against.

 

The draft Law aims at regulating the legal regime of credit recovery, out-of-court and legal process, and the insolvency process of natural and legal persons in economic difficulties or imminent insolvency.

 

Angop learnt that the law applies, namely, to commercial companies, civil under commercial form, associations and foundations, civil companies, cooperatives, inheritance (when there is no certain and determined heir or when its existence is unknown), any other autonomous assets and to individuals.

 

The draft law results from the fact that Angola is one of the few countries that still does not have an autonomous legal regime on insolvency (Institute through which the state of difficult economic situation or lack of liquidity of a company is declared by judicial sentence).

 

However, at the level of the national judicial system, the Insolvency and Bankruptcy Regime is summarized in the Code of Civil Procedure, which is no longer adequate to the current socio-economic reality of the country.                             

 

In 2014, the then Ministry of Justice began to conduct studies to identify the most appropriate mechanisms for insolvency resolution, as well as to deepen its general legal and regulatory framework, taking as references the best international practices.

The eighteen-article document was approved with 26 votes in favour, none abstentions and none against.

 

The draft Law aims at regulating the legal regime of credit recovery, out-of-court and legal process, and the insolvency process of natural and legal persons in economic difficulties or imminent insolvency.

 

Angop learnt that the law applies, namely, to commercial companies, civil under commercial form, associations and foundations, civil companies, cooperatives, inheritance (when there is no certain and determined heir or when its existence is unknown), any other autonomous assets and to individuals.

 

The draft law results from the fact that Angola is one of the few countries that still does not have an autonomous legal regime on insolvency (Institute through which the state of difficult economic situation or lack of liquidity of a company is declared by judicial sentence).

 

However, at the level of the national judicial system, the Insolvency and Bankruptcy Regime is summarized in the Code of Civil Procedure, which is no longer adequate to the current socio-economic reality of the country.                             

 

In 2014, the then Ministry of Justice began to conduct studies to identify the most appropriate mechanisms for insolvency resolution, as well as to deepen its general legal and regulatory framework, taking as references the best international practices.