The Cabinet has approved a joint proposal presented by the President and the Minister of Justice, Prison Affairs, and Constitutional Reform to authorize the Law Commission to prepare a preliminary draft of the insolvency laws within a period of three (03) months after consultation with the relevant parties.
Reforms in the insolvency laws for unincorporated small businesses and consumer insolvency are contained in the Insolvency Ordinance 1853, and provisions relating to company insolvency are contained in the Companies Act No.
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7 of 2007.
As the existing provisions under those laws are not sufficient for the present needs, the need to introduce a new law has been proposed.
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