“And if you are engaging and abusing it, the Trustee is best placed, because they have to monitor everything.”
Bota McNamara, Legal Consultant for the Insolvency Legislation, explained the role and authority of the Trustee and the Insolvency Supervisor under the new legislation spearheaded by the National Competitiveness and Productivity Council (NCPC). In recent weeks, the NCPC has held several stakeholder consultations with the legal fraternity, insurance, and financial sectors, and the business community to update them and solicit feedback on the imminent enactment of the Insolvency Bill.
“In terms of powers, as I said, the Trustee be it Government or otherwise has a lot of powers built in to investigate, to engage in collection of assets, distribution of assets, and ensure that the system plays fair for both sides creditor and debtor. The same with the Insolvency Supervisor, because they will have at their disposal a lot of tools to police Trustees to ensure that they are doing their job correctly. And when they are action in a quasi-judicial manner they will also be enforcing the law to make sure those engaging in it can benefit lawfully from whatever rights they seek to enforce.”
Nicolas Barnard, Chairman of the NCPC, stated that the Office of Insolvency will serve as an arbiter, providing assistance to businesses and individuals negotiating proposals with lending institutions.
“With that abating that can help them, that can mediate, I think it’s a fantastic idea. I think it will give businesses a lot of confidence. Going through difficult times they know there, is a door that they can knock on. Again I also think that the banks will actually appreciate that mediating agency and it will give them security too.”
Brian Louisy, Executive Director of the Saint Lucia Chamber of Commerce, Industry, and Agriculture, acknowledged the Chamber’s support and active participation in discussions and consultations over the years, contributing to the formulation of the Insolvency legislation from its initial concept to its current stage.
“So, it gives people an opportunity to look at their financial situation, look at their debt situation, and make arrangements other than just wrapping up their businesses. So, it gives options. It gives the businesspersons a chance to continue their operations. It gives an individual a chance to maximize their returns and their options. It also gives the creditor a greater chance and a greater structure in recouping some of the outstanding resources that they have put forward.”
He noted that the Chamber has long advocated for strengthening Saint Lucia’s financial infrastructure and landscape to offer more options for both the business community and individuals.
“The Chamber was one of those over 15 years ago spoke about the issue of access to credit and access to credit has two sides it has the supply side but also has the demand side. How do businesses and people organize themselves and organize their arrangements in a credible way that makes them more attractive and makes it easier for them to access whatever credit is available?”
The NCPC also received high commendation for its steadfast commitment to advancing the Insolvency legislation.
“Well I am extremely proud to be the Chairman of the NCPC, essentially I have looked at the very hard work undertaken by the staff of the NCPC. I think it’s hidden in the shadows to some extent and it’s been marvelous to look and see what work and what they have achieved. To hear the people on the ground articulate what they have achieved it’s fantastic.” Nicolas Barnard
“The NCPC has not taken this as a tick-in-the-box process where they say we did that, they have done extensive dialogue, substantive negotiation. It has been sometimes frustrating but they have stayed the course and so we are happy to see this legislation come to fruition.” Brian Louisy
The NCPC has launched a public education campaign to inform stakeholders and the wider public about the benefits and provisions of the Insolvency legislation.