THE STANDARD
By
Dominic Omondi |
January 8th 2021 at 00:00:00 GMT +0300
Amos Kimunya. [Standard]
Shareholders of companies declared bankrupt by courts will have 30 days to salvage their businesses should a new Bill sail through.
The amendment of the Insolvency Act, 2015 is contained in the Business Laws (Amendment) Bill, 2020, which was introduced by National Assembly Majority Leader and MP for Kipipiri Amos Kimunya.
It also proposes to have receiver managers pay unsecured creditors at the same time with secured ones, in what is a score to suppliers who are always last in the pecking order when it comes to repayment.
“The Bill proposes to amend the Insolvency Act, 2015 to clarify that an administrator can distribute routine payment to unsecured creditors without courts’ permission,” said Kimunya in the memorandum of objects and reasons.