Corporate Rehabilitation Bill passed

ISLAMABAD: Senate on Tuesday passed the Corporate Rehabilitation Bill 2017, which is aimed at to restructure and rehabilitate distressed and sick corporate entities with consensus of all relevant stakeholders, a statement said on Tuesday. 

The Minister for Law Zahid Hamid moved the bill. “The existing institutional arrangements and legal process for revival and rehabilitation of distressed companies are both inadequate and time consuming,” the statement said. “Efforts in the past have been made largely on said law, which resulted in imbalance of legal remedies for rehabilitation of debtors and protection of creditors. (So), a comprehensive legal framework is urgently needed to rehabilitate the distressed companies and businesses in the country.”

The first part of the legislation, which is titled as “Corporate Restructuring Companies Act 2016” was enacted on July 1, 2016. “It provides mechanism for rehabilitation of the distressed companies, which is the need of the hour for sustainable growth of the corporate sector,” the statement added.