The insolvency legislation in The Bahamas

In 2011 and 2012 the insolvency legislation in The Bahamas was completely revamped by the enactment of the following Act and Rules:

(i) The Companies (Winding Up Amendment) Act, 2011;
(ii) The International Business Companies (Winding Up Amendment) Act, 2011;
(iii) The Companies Liquidation Rules, 2012 (the “CLR”);
(iv) The Insolvency Practitioners’ Rules, 2012; and (v) The Foreign Proceedings (International Cooperation) Liquidation Rules, 2012.

The procedure for the liquidation of companies incorporated under the Companies Act of 1992 (as amended by the Companies (Winding Up Amendment) Act, 2011, the “Companies Act”) and under the International Business Companies Act of 2000 (the “IBC Act”) is now almost identical in that section 89 of the IBC Act (as amended) states that “[a] company incorporated under this Act may be wound up under any of the circumstances, insofar as they are applicable to a company incorporated under this Act, in which a company incorporated under the Companies Act, Ch. 308 may be wound up and subject to the provisions of this Part the provisions of the Companies Act relating to winding up and dissolution shall apply mutatis mutandis to the winding up and dissolution of the company”. Accordingly, the CLR apply to both types of company.