Vanuatu adopts new company and insolvency legislation

Vanuatu’s new Companies Act takes effect on 31 August 2015 and it replaces the previous Companies Act of 1986. On the same date, the following legislation on company insolvency was adopted:

  • The Companies (Insolvency and Receivership) Act No. 3 of 2013;
  • The Insolvency (Cross – Border) Act No. 4 of 2013 which implements the Model Law on Cross – Border Insolvency, adopted by the United Nations Commission on International Trade Law on 30 May 1997.

Previously, the old Companies Act governs and regulates company insolvency related matters and there was no separate insolvency legislation.

The new Companies Act has introduced important changes, such as removing the minimum requirement for a private company to have two members by allowing single shareholder companies; providing a set of model rules which can be adopted by private companies; setting out statutory duties of directors of a company.

 

 

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