Proposed legislation that would allow courts to ban incompetent or delinquent practitioners from operating as liquidators, voluntary administrators or receivers has been welcomed by an insolvency specialist.
Commerce Minister Simon Power says the Ministry of Economic Development is working on a Insolvency Practitioners Amendment Bill, which could be introduced as early as next year.
Jeff Meltzer, a partner with chartered accountants and specialist insolvency practice Meltzer Mason Heath, says regulation is long overdue.
At present, the only organisation that offers some form of review process is the New Zealand Institute of Chartered Accountants, he says, and this operates only if a chartered accountant is appointed as liquidator, receiver or administrator.
The Insolvency and Trustee service administered 277 liquidations in the last financial year, an increase of 99% on the previous year.