considering legislative reform for statutes governing insolvent companies and expects to produce a report to BIBA with recommendations by May.

The insolvent liquidations sub-committee of the Companies Act committee of BIBA has been identifying places where current insolvency legislation "appears antique, impractical or inconsistent with other legislation.'' Chairman Nigel Howcroft said, "In particular, the provisions dealing with the international recognition of insolvency procedures, the concept of wrongful trading prior to insolvency, the clarification of the law applying to the receivership procedure, possibly introduction of the administration procedure (being the rehabilitation procedure akin to the Chapter 11 procedure under the US Bankruptcy Code) and all of the provisions which tidy up, modernise and remove incongruities from the pre-existing legislation could all be beneficial in Bermuda.'' Their objectives also include studying the rights and obligations of the Registrar of Companies, under sections 32 and 33 of the Insurance Act 1978, in connection with companies having financial trouble.

Mr. Howcroft, the head of liquidations and insolvency at Appleby, Spurling & Kempe, said, "There has been lengthy discussion within the sub-committee on the problems created by these two sections. Many felt it was the most problematic.'' He said that in cases where the liquidator would prefer to play a supervisory role, he should have that option, perhaps at a "halfway'' house, to assure that no proceedings, including insolvency proceedings, could be commenced against the company under supervision.

The sub-committee is also considering making a recommendation to have the English Insolvency Act 1986 become a model for legislative review.

This option would address the issues raised and allow for a framework of precedents that local courts could follow.