Draft bill on Modernisation of Liquidation Proceedings Act

The draft bill on the Modernisation of Liquidation Proceedings Act (Wet modernisering faillissementsprocedure) went into public consultation on 2 December 2015. The purpose of the draft bill is to make Dutch liquidation proceedings more efficient and transparent. This should lead to a quicker and more inexpensive way of liquidating companies. As a result, the liquidation distributions should increase.

Proposed revision

The draft bill entails four major amendments of the current Dutch liquidation proceedings.

First, liquidation proceedings will be updated to the current technical and digital standard. An example is the implementation of the use of electronic means of communication.

Secondly, the draft bill aims to improve the management of assets and to speed up the duration of insolvency proceedings. For instance, the introduction of a deadline for creditors to file their claim with the bankruptcy trustee.

The third major revision provides for customised ways to wind up a company. The complexity and size of some liquidations demand deviation from the standard insolvency procedure.

Finally, the draft bill contributes to officers of Dutch courts becoming more specialised. The bill also aims to improve the legislative process. For example, setting up an advisory council for insolvency law.

The bill is part of the legislative programme ‘Reassessment of Dutch insolvency law’. Another highly relevant part of this programme is the Continuity of Companies Act II (Wet continuïteit van ondernemingen II), also known as the Dutch scheme of arrangement. For more info on this draft bill, you can visit www.debrauw.com/wco2.

Downloads

  • Click here to download the legislative bill (Dutch).
  • Click here to download the explanatory memorandum (Dutch).
  • Click here to download De Brauw’s response to the public consultation (Dutch).

More information

For more information, please contact Ruud HermansReinout Vriesendorp or Rob van den Sigtenhorst.