The Winding-up proceedings

The Bill has new rules about the winding-up proceedings of financial institutions. The rules are similar to the rules on insolvency proceedings according to the Bankruptcy Act. As a result of a temporary provision in the Bill, all the principal rules of the winding-up proceedings in the Bill apply to the banks whether the Moratorium is in effect or not. In the case of the three banks, there are several derogations from the general rules of the Bill on winding-up proceedings. These derogations are described in the temporary provisions. The principal derogations are:

• The provisions on appointing a provisional Board of Directors for a financial undertaking do not apply as a Resolution Committee has already been appointed;
• Provisions on the initiation of winding-up proceedings do not apply, because the three banks will automatically enter winding-up proceedings without a court ruling once the moratorium concludes;
• The provisions on reference dates do not apply to the three banks. The reference date for the three banks is 15 November 2008.