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Welcome to IAPA’s Quarterly newsletter
Q3, September 2017
2017
SSeptembe20162016
2016
IAPA - A global association of independent accountancy and business advisory firms
172 member firms 63 countries
DISPATCHWORK IAPA’s quarterly news publication containing news
and information for Members of IAPA
Creating the fabric of a global society
Global Support.
Local Knowledge.
IAPA Social
Words from the Acting Global
Chairman
1. How to make the transition to offering advisory services? What’s working, what are the traps to
avoid and what disruptive forces in the industry are triggering the need for change? (20 July)
2. How to accelerate your performance as a leader? Discover strategies to accelerate your leadership
success. (27 September)
3. How to hit your marketing sweet spot with clients? How to develop a marketing and social media
strategy? (15 November)
See page 7 for more detail.
over the last 12 months and to be
creative in bringing new benefits to
our global members.
You will have read about the new
webinars, which have been
fantastically well received. The first
with over 30 members from 20
countries participating and the
second, just earlier this week, with 23
members from 16 countries
participating. This has been an
exceptionally positive initiative with
the majority of attendees wanting to
sign up to the next event in
November. A great endorsement and
more will be planned for 2018!
Hopefully you have seen that the
Members’ Portal has been redesigned
to make information more accessible
and to highlight the key tools that
IAPA has to offer. These changes are
the result of the Centre responding to
specific member feedback.
Dear Members
I hope all of you have had an enjoyable
and relaxing few months. Hopefully
some of you have had the opportunity
to take some time off work, perhaps
even had a holiday. Janice and I had an
enjoyable two week holiday in Austria
and one week in Portugal.
Some, I know, have been through a
more challenging period recently and I
must take this opportunity to extend
my thoughts and best wishes to those
affected by the recent weather related
disasters around the world and those
caught up in cities where there have
been horrific terrorist attacks over the
last few months. We have many
member firms in countries that were
affected, but I am pleased to
understand that all members are safe.
Although work tends to slow down
from July to September for many, IAPA
has been busy using this ‘member
down-time’ to reflect on our offering
over the last 12 months and to be
creative in bringing new benefits to our
global members.
The Membership Survey at the
beginning of 2017 was
instrumental to this and we will
repeat these surveys on an
annual basis to make sure the
association is supporting your
needs. I hope you will also have
noticed the new ‘case studies’
on the IAPA website homepage,
using real member stories to
highlight the success of IAPA.
These success stories will be
continuously updated, so if you
want to appear please let the
Centre know.
Still time to register for Rio…
IAPA International Conference
Rio de Janeiro, Brazil
23-26 October 2016
Visit the IAPA Portal for full details
NEW: IAPA WEBINARS
‘A fantastic new initiative’….was the feedback received for the
new IAPA webinars, introduced to global members in July
2017. IAPA was excited to initiate a series of webinars
focusing on topics specifically for the professional services, in
collaboration with Mindshop. The ‘hot topics’ include:
Many of you do speak with me
and the Centre, and that open
communication is very important
to me. Let’s make sure we do not
lose this valuable part of our
ethos.
Thinking about my holiday it was
lovely to take some time out and
to meet up with our IAPA
members in Innsbruck (Angelika
Hellweger, Westtreuhand GmbH,
Austria) and Albufeira (below:
with Jose Ramalhete, Jose
Ramalhete & Barros Rafael SROC
Lda, Portugal).
Not only was it good to spend
time together with friends we
also discussed IAPA issues and
plans for the future. Such
conversations are so important.
Continued on page 8…
Acting Chairman’s
words continued…
Who’s Who @ IAPA
International Board
Following the USA Regional AGM in Miami, IAPA is delighted to welcome Scott Minnig as the new US Regional Chairman and therefore the new US representative on the International Board.
John
Campbell
Treasurer and Canadian Representative
Martin Clapson
Acting
Chairman
Scott Minnig
US Regional Chair
Ozgur
Demirdoven
EMEA Regional Chair
Ramon
Gonzalez
Latin-American Regional Chair
Over the coming few weeks we
will be publishing IAPA’s first
quarterly Tax Bulletin. Thank you
to all firms that contributed to
this and I trust you will find the
summarised tax updates
informative. If your country has
any major new tax regulations/
updates our members need to
know about, please do email the
Centre with the information.
In addition to the above, there
have been many Regional Board
meetings as well as International
Board conference calls to discuss
member feedback and to
deliberate the new strategy
document.
In my new position as Acting
Global Chair, it has been an
important time to re-balance and
revise plans from the past 18
months to ensure we are aligned
on a strategic path that will
enable IAPA to prosper and grow.
All this will be summarised at the
IAPA International Conference in
Barcelona, October. I urge you all
to attend this key event to discuss
the future of IAPA and to hear
first-hand our plans.
Hopefully I will see you in
Barcelona. I know some of you
cannot attend but please do be in
touch and contact me or the
Centre if you have any questions
or comments.
Mohd Noor Abu
Baker
Asia-Pacific Regional Chair
Modifications to IAPA Members’ Portal
There is now a search facility on both the website and the members’ portal by country/service and industry type, to help you to find the right member to assist with queries.
Some of you will have heard from me asking you to confirm which industry sectors your firm services, so please make me a happy bunny and respond!
Please spend 5 mins updating your profile in the portal
Referrals 2017
The year is passing very quickly, so this is just an initial
reminder that the Members Portal is available for you to
update your referrals at any time. The deadline will be
31st January 2018!
Kimberley’s corner! Requests from
IAPA’s Finance Manager
IAPA CANADIAN BHD CONFERENCE
14-17 September, Edmonton, Alberto
The Y&A LLP Chartered Professional Accountants hosted the 2017 BHD Canadian Group Annual Conference in Edmonton, Alberta, Thursday 14 September – Sunday 17 September. The BHD Group is IAPA’s Canadian arm of the association and comprises 14 member firms across the country. 38 partner delegates and 19 spouses attended this annual conference (pictured above), which offered a prime opportunity for delegates to network face to face, share and deliberate technical issues and perform key benchmarking activities that offer valuable insights for all firms.
As is tradition, the conference programme commenced with an informal welcome cocktail party on Thursday evening. Here members were able to re-connect with established colleagues and meet new faces at the West Edmonton Mall Hotel.
The official Conference began on Friday and John Campbell, IAPA International Board Member and BHD Member, presented the annual update from IAPA including developments with the new IAPA strategy document and action taken forward following the Members’ Survey results including the new member services instigated by the Centre.
The programme also included important discussions on various practice management topics, ‘the best practices for T1 season’ and ‘the impact of proposed tax changes’.
The morning discussions as always were informative and educational. Delegates and guests were able to continue their networking in the afternoons in a more informal setting, which included a sightseeing tour of
With many thanks
Kimberley Muir
the Leduc #1 Energy Discovery Centre on Saturday
afternoon. The conference concluded with a visit to the
impressive Y&A offices in Edmonton.
IAPA – UK and Global rankings for
international networks and associations
IAPA ranks 9th in the top 10 international networks and associations in the UK (August issue of
Accountancy Magazine). The first 8 are international networks, making IAPA the leading international
accounting association in the UK.
IAPA continues to rank in the top 25 of Accountancy Magazine's rankings for international networks
and associations globally, ranking no. 11 for leading international accounting associations/ alliances.
Save the date:
IAPA EMEA Regional Conference 2018, Oslo, Norway
25-27 May 2018
IAPA Website and Portal updates
Have you seen the website and members’ portal changes?
Take a look at the new homepages of both….
The Centre has made changes to the IAPA members’ portal to make information much more accessible. With various
tools readily available to help members better service their clients and market their own firms internationally, as well
as detail on the many structured events and networking opportunities IAPA has to offer, we have already seen an
increase in traffic to these resource pages. Feedback has been very complimentary – quick and easy to find thanks to
the new design and graphics.
On the homepage of the website, we have placed case studies with photos of real members. These will be rotated
on a regular basis and do a great job of promoting the success of IAPA membership not only to existing members but
to potential new firms as well. Member success stories are a valuable way of highlighting IAPA’s strengths - with
many thanks to all those that have participated. It is good to see IAPA evolving and growing stronger through
member collaboration.
IAPA International
Conference 2018
Membership Communication:
It is good to see the new ‘Membership Communication’
tool being utilised in the IAPA Members’ Portal. This is a
key way for members to contact each other in a single
country, multiple countries, by regions or the entire global
membership should you request information or services on
a specific topic.
We encourage members to make use of this and use it as
much as possible rather than going through the Centre.
Please keep an eye out for emails entitled ‘IAPA Members
Portal Communication’ – it could be business coming your
way!’
Miami, USA
October 2018
The first in a series of webinars exclusively for IAPA
members was launched on 19 and 20 July and proved
very popular with 30 attendees from over 20
different countries joining on the current hot topic
‘Successfully Transitioning to Offer Advisory
Services to Clients’.
Targeted at Partners and Senior Managers and
presented by Mindshop Managing Director, James
Mason, this webinar focused on the global trends
impacting accounting firms and the best practice
solutions offering practical step by step action points.
Using insights from hundreds of example firms the
webinar took attendees through a practical ‘road
map’ of how to make the transition.
This included looking specifically at the four trends
driving rapid change, why offer advisory and why
now, how to make the transition from traditional
compliance only offerings to offer more of valid
added services and importantly the top strategies for
success.
‘This is the kind of support the member firms need to
create strategy and continue to grow. Excellent
initiative, thank you.’ Doris Bordierd - Ragh &
Asociados, Dominican Republic.
'How to Accelerate Your Performance as a Leader'
was the topic for the second IAPA webinar presented
again by Mindshop Managing Director, James Mason,
who shared key top tips for leadership
success. Attended by 23 members from 16 countries
this webinar focused on very practical strategies you,
as a leader, can immediately implement to build
capability and get more from you and your team to
increase your firm's profit and growth.
Using insights from a survey of hundreds of different business
leaders the webinar began by analysing the top 10 ‘must have’
capabilities identified for successful leaders. The important
focus for leaders should be on the gaps in these 10
characteristics and what can be done to drive change in those
areas. James Mason then introduced attendees to Objectives
and Key Results, or OKR’s, the next evolution of performance
management which can be used to drive greater alignment
across businesses. A very useful concept to adopt as a leader
to achieve high performance within your firm. The
presentation then moved on to strategies to effectively coach
and develop your team using a coaching matrix.
Importantly, however, you need to have the time to move a
business forward strategically, action change and manage your
team more effectively. Watch the webinar recording to find
out more about how to free up your time and also to learn
about tools to enable a leader to boost their energy levels
through greater life balance ensuring you have the energy for
success and the ability to lead by example.
‘Fantastic informative webinar with an emphasis on how we
can apply the strategies in practice. Very clear presentation
style and not too theoretical’. Bernd Steinhilber, Liebhart &
Kollegen, Germany
If any member was not able to attend either of these webinars then you will be pleased to know that a recording and a copy of the slides are both now available on the IAPA Portal in Resources and Useful Links.
We look forward to the next scheduled topics. To register email [email protected]:
Webinar 3 – How to Hit Your Marketing Sweet Spot with Clients (15 November 2017)
NEW – IAPA Webinars a great success with members from >20 countries attending
IAPA International Conference 2017
We look forward to welcoming our global members.
A fantastic networking and social programme has been put together along with our usual technical forums. We welcome guest speaker Jim Thomas, performance improvement specialist, who will focus on improving practice profitability and maximising client referrals. For more information email [email protected]
This is IAPA's key event for 2017 and we hope you will all be able to join us to:
meet & network with new/existing members exchange views on the latest developments in the international business environment share methods of best practice be updated on progress and plans for IAPA and help shape the future enjoy the beautiful and historic city of Barcelona!
Note from the Acting Global Chairman continued…
IAPA’s International Conference -
This global conference offers IAPA
members a wonderful opportunity
to meet and get to know each other
and to build long lasting
relationships that facilitate doing
business together.
Building on the theme of
‘generating more business’, we
have a guest speaker presenting on
‘Achieving Market Leading Practice
Profitability’, which I hope you will
look forward to attending. There is
still time to register – I encourage
you all to join us, it will greatly
benefit you and your firm. If you
want to maximise your membership
of IAPA and get ideas to grow your
business, you should register for
Barcelona.
This year the Tax Forum and D&O
Forum are separate to the main
working programme to allow more
This strength is gathered by the
active participation of our members,
the commitment of our regional and
international boards and the
enthusiasm of the Centre.
I am confident that we will continue
to develop and evolve, and I look
forward to reporting more in
Barcelona and to seeing as many of
you as possible once again.
Looking forward to seeing you all
soon.
Thank you for your support.
Martin
Martin Clapson Acting Global Chairman
time to work on case studies and
to invite specialist speakers to
increase the benefits to you. An
additional small fee will be
charged to cover costs but we
hope with the additional time
and global specialists you will be
happy to support the new
format.
Of course we continue our
tradition of a
networking/sightseeing finale on
the last day of the event, this
year with a trip to beautiful
Montserrat.
Over the last few months, I am
delighted to see that with the
fruition of our new initiatives,
IAPA has strengthened and
continues to prosper as a top 10
International Accounting
Association.
IAPA New Member:
IAPA is delighted to welcome the following new member:
IAPA in the press…
R. Arora & Associates, New Delhi, India
Established in 1985 with a main office in New Delhi and 2 branches
in Ludhiana and Chandigarh. The firm offers a full range of
accountancy services focusing on global clients with operations in
India. Clients include large conglomerates – private as well as public
listed entities, foreign companies from Europe, USA, Asia Pacific &
Africa, SMEs and start-ups.
Contact Partner: Mr Paramnoor Singh
Email: [email protected], T: + 91 95604 00617
www.r-arora.com
IAPA and its Affiliate Member Wilson Elser are pleased to offer an online tool that offers all IAPA members an
invaluable resource to assist their firms in risk management. This tool, a dedicated website, aids firms in adopting a
proactive and sophisticated approach to risk management and litigation avoidance. Members are now able to gain
immediate access to a wealth of knowledge including: templates for engagement letters, insightful articles, a list of
seminars and continuing education programmes and a ‘contact-us’ facility for any questions that need a quick
response.
Ever since the last newsletter, the Centre has had enquiries about the Wilson Elser ‘Risk Management’ site,
exclusively designed for IAPA members. Just to remind you, for those that aren’t aware – take a look in the
IAPA Portal > Resources> Wilson Elser:
IAPA tools for members’ use
Detail coming shortly …
IAPA Latin American Regional Conference 2018
Punta Cana,
Dominican Republic
September 2018
Coming next month: The IAPA Tax Bulletin
News from IAPA member firms:
New Zealand Foreign Trust Disclosure Rules
The new disclosure regime for New Zealand foreign
trusts is now in place and with the 30 June deadline for
compliance now passed we can take stock of the current
position.
When the new rules were introduced last year there was
a lot of commentary within the foreign trust industry in
New Zealand that the new disclosure rules were too
evasive.
Resident trustees would need to provide to the Inland
Revenue Department details of the settlor and
beneficiaries, including addresses, email contact and tax
identification numbers, as well as details of the amounts
settled upon and distributed by the trust. Coupled with
the introduction of an annual reporting regime and the
strengthening of New Zealand’s tax information
exchange network it was clear a large number of clients
were concerned about these rules.
So what has happened?
The picture is still unclear as the majority of disclosure
was completed in the week leading up to the deadline.
However, based on anecdotal evidence the amount of
foreign trusts that have either been terminated or
redomiciled to another jurisdiction is significant.
Reports are that around 50% of existing foreign trusts no
longer have any connection with New Zealand. There are
almost certainly a number of trusts that did exist for
unlawful purposes that have been weeded
out. Conversely other trusts where confidentiality was a
driver based on the jurisdiction the settlor lives in have
continued but in another jurisdiction with less onerous
disclosure rules.
Singapore has been the recipient of a lot of these trusts.
For more information contact:
Nigel Smith, Covisory Partners Ltd T: +64 9 3071777, E: [email protected], www.covisory.com
Helmi Talib & Co: a period of growth
Our firm has grown over the year and added 30 new
clients from various industries. With the increased
workload, we hired 13 new staff at various levels.
Amongst them are Mari Jane Tiburcio, a senior audit
manager, and Audrey Ong, our tax director. Mari Jane is
not only strengthening our audit and assurance
department, but is also spearheading our Anti-Money
Laundering and compliance team.
Audrey Ong, started her career at the Inland Revenue
Authority of Singapore and has amassed more than 25
years of experience in tax. In recent years, she has
provided tax advisory to IPO, acquisitions and sell - side
activities.
It is natural that with this expansion we set up a
communications department to manage the company's
internal and external marketing efforts. Mastari Jais is
now leading this division, and is especially dedicated to
strengthening Helmi Talib & Co's social media presence.
We continue to invest in our staff and on 24th August had
our latest training program on risk management and
ethical standards for accountants.
We are proud of our achievements of late, but it is also
important to give back. Helmi Talib & Co was the proud
sponsor of the Arab Association of Singapore's Haflah
2017. The association has been active in raising funds in
collaboration with the United Nations development
programme for Yemen.
Over the past month - the Singapore National Day
celebrations were a blast at Helmi Talib & Co. Our staff
had playoffs of Singaporean charades and ended it with a
make your own popiah session (a popular Chinese wrap).
Helmi Talib & Co www.helmitalib.com E: [email protected]
Audit exemption finally comes true in
Malaysia
On 4 August 2017, the Companies Commission of
Malaysia has issued a practice directive no 3 entitle
“Qualifying Criteria for Audit Exemption for Certain
Categories of Private Companies”. The directive set out
the category of Company and its criteria toward the
eligibility for audit exemption. The Category are:
Dormant companies,
o Company incorporated on or after 31
January 2017 and annual financial
period after that date.
o Company incorporate prior on or before
31 January 2017, the annual financial
commences on or after September
2017.
Zero-revenue companies and
o The annual financial period commences
on or after 1 January 2018
Threshold-qualified companies
o The annual financial period commences
on or after 1 July 2018
Based on the staggered commencement date the
Company will be exempt from audit effective from 1
January 2018.
The qualification for threshold-qualified companies:-
1. Revenue – not exceeding
RM100,00
2. Total Asset – not exceeding
RM300,000 and
3. Employee – not more than 5
employees
The Company must meet all qualification based on the
current financial statement and the immediate past two
financial year.
The Company must audited its financial statement if
there is a request from members eligible to vote holding
in aggregate of not less than 5% of the total number of
shares issues. The request must be submitted in writing
not later the one month before that end of that financial
year.
However, the company exempted from audit must lodge
it unaudited financial statement that comply with the
approved accounting standard. The financial statement
must also include directors’ report, statement by
directors and statutory declaration pursuant to sections
251 and 252 of the Companies Act 2016.
A certificate signed by a director certifying that:-
1. No request has been received
2. Directors acknowledge their responsibilities for
Complying with the requirement of the Company
act 2016 in respect of accounting record and
financial statement.
3. The financial statements have been prepared in
accordance with the Malaysian Accounting
Standard Board (MASB).
4. That the unaudited financial statements have
been circulated to the member in accordance
with the Companies Act 2016.
The audit exemption is the main concern of Approved
Company Auditors in Malaysia. However changes have
created new services from assurance to compilation
work. This will relieve the auditor to comply with rigid
audit procedure and risk at a small fees. Most small
companies are auditors dependent in preparing their
financial statement, so there is no reduction in revenue.
IMRAN Malaysia CONTACT: Mohd Noor Abu Bakar
TEL: +603 2181 6869
EMAIL: [email protected]
WEB: www.imran.com.my
After more than 10 years Mobility Services Europe B.V. (Cratos) from Amsterdam will be taken over by Mobiliteitsdiensten Nederland B.V.
JM Corporate Finance succesfully supported and advised the shareholders of Cratos regarding this sales transaction.
Within this business sector JM
Corporate Finance has previously
succesfully advised the sale
of EasyWay in 2012 to USG People
(listed at the stock exchange).
Through this acquisition Mobiliteitsdiensten Nederland strenghtens its position in this niche market. After the acquisition the name “Cratos” remains to exist and the continuity for its activities, personell and customers will be ensured.
Should you need any further
information about the Dutch M&A
market or need assistance in
setting up a business in the
Netherlands, please contact us.
JM Corporate Finance
Heusing 12, 4817 ZB Breda
T +3176-8870001
M +316-53229496
Jan van Wijngaarden, Partner
[email protected] (picture right)
Bart Koreman, Senior Advisor
[email protected] (picture left)
JM Corporate Finance, The Netherlands
(IAPA associate member)
We’re delighted to make you part of the news out of JM Corporate Finance and the Dutch acquisition market in
general. News that makes us proud and news we would like to share with you.
A strong personal
relationship is at the heart of
any first-rate advice. When
engaging JM Corporate
Finance we will ensure
broad, solid and tailor-made
advice offering optimum
results and win-win situations.
“Low cost – high quality”is
our mission at JM Corporate
Finance
For further information regarding our
core business we refer to our website:
www.jmcorporatefinance.nl/uk
Cratos (NL)
Recently we advised on the sale of Lift Quality out of Raamsdonkveer to the Swedish Edmolift.
Edmolift is one of Europe”s largest manufacturers and suppliers of scissor lift tables, pallet handling products and material handling aids.
This was a cross border SME transaction with a large strategic value as Edmolift can further extend its activities in the Benelux Countries. The current owner/director of Lift quality will remain in his position as managing director the coming years.
Lift Quality (UK)
Do you know …. ?
You can sign up for a workshop Business succession and take-over transactions ; …..”Early preparations will pay off”.
This workshop will be given in cooperation with Blue-Legal lawyers on Wednesday the 11th of October in Hotel Breda Princeville, Holland. For further information, please send a mail to; [email protected]
-Scaling will remain to be a dominant trend, whereby the number of acquisitions continues to increase in 2017
- An acquisition is tailor-made and can be very complex. Take your time to manage this process in the best way possible. Haste makes waste!!
You can sign up for a workshop
Find out more about IAPA
conferences / events
Watch IAPA TV
Visit www.iapa.net
News from Stark & Stark, Israel
Who We Are
Charles Scerri & Associates (CSA) is an established multi-disciplinary Accounting and Audit firm based in Malta. The firm has been set up since 1995 and has grown to become a medium size audit firm servicing a wide range of local and foreign companies spanning in multiple industries. CSA has grown and diversified over the last two decades to become one of the important players in Malta.
Services Offered
Workforce
We are pleased to inform our partners that our workforce has increased from 35 to 42 employees in the last year. New recruits brought the expansion of our Audit, Corporate, Accounting and Consultancy departments.
Social Events
So far this year we have organised a carnival party for staff in February, where we had a great time wearing different costumes and making fun of ourselves. Team building workshops included the creating of items made from paper where staff where grouped in teams and were given paper and scissors as the only items to use and create something interesting.
As part of charity events we participated in a meal
organised under the patronage of the President of
Malta. Members of staff collected funds and donations
to be presented at this dinner which are received by the
Community Chest Fund.
Ranking of accounting firms 2017 - DUN'S 100: This year, the Stark & Stark accounting firm was ranked at the 36th place, a significant upgrade from the 47th place the previous year.
Iris Stark was recently announced as being Accounting & Auditing Adviser of the Year – Israel, by Finance Monthly Global Awards 2017.
Iris Stark was also announced as Most Influential
Woman in Accounting Services – Israel, by Women in
Wealth Awards 2017 hosted by Wealth & Finance
International.
The Israeli (Japanese) company – IQP – owned by Mr. Guy Kaplinsky, a big client of the Stark & Stark firm, was recently sold to the global General Electric Company for 40 million USD.
The Stark & Stark firm has recently won a tender for the House of the Israeli President, Mr. Reuven Rivlin, as internal auditors, a position to which many firms competed for, and will soon get in work.
Iris Stark is now activating and promoting a new Bill for the Israeli Knesset (parliament), to increase the number of women in boards of directors. The Bill is in favor of the representation of 40% of women on board of directors (compared with only 17% today). Mrs. Stark has convinced the Israeli Justice Minister to hold a hearing on the matter. Mrs. Stark was invited to the hearing, which is expected to take place in early October.
News from CSA, Malta
Perks of UAE’s new bankruptcy law (Part2)
The new bankruptcy law of 2016 that repeals the
Commercial Transactions Code (CTC) of 1993 has much
to offer. Now, businessmen will no more have to face
arrest or legal prosecution for unpaid debts nor do they
have to flee the country to avoid arrest as many had
done in the past. The new legislation offers creditors
and debtors increased flexibility in dealing with financial
distress while ensuring certainty and security for
business owners and investors, who can rely to some
extent on protection for their businesses during a
restructuring. It will also enable them to effectively
negotiate with their creditors.
The new law suspends criminal proceedings on a debtor
with dishonoured company cheques once a
preventative composition or restructuring scheme has
been initiated. The provisions in this new law are more
flexible and might help to reduce the financial distress
by reinforcing the ability to seek new financing.
Restructuring debt can be taken into consideration than
provoking member of the management to abscond and
exit the UAE. The completion of the entire process is to
be done in a given specific timeline. The bankruptcy
trustees, nominated by the debtors are authorized with
more power which shall reduce the court’s involvement
and lead to a smoother and more efficient process.
In case of exploitation of this protection, debtor will be
charged under fraudulent insolvency offence.
This procedure is intended to give some time to the
debtor facing initial financing difficulties and is intended
to be used at the early stages of financial distress. A
restructuring process may be commenced by a debtor
where it has failed to meet its debts as they have fallen
due for a period of more than 30 working days as a
result of financial difficulties or where such debtor is
balance sheet insolvent.
due for a period of more than 30 working days as a
result of financial difficulties or where such debtor is
balance sheet insolvent.
The process may also be commenced by an unsecured
creditor owed a debt of more than Dh100,000 that is
more than 30 working days overdue following a formal
demand by the creditor.
The court appoints an official or insolvency trustee to
manage the debtor or its business by determining the
indebtedness of the debtor and monetizing the debtor’s
assets under the court’s supervision. In the case of a
court ordering an insolvent liquidation, the debtor (or
presumably its board if it is a company) may no longer
participate in any commercial activity.
This law aims at recovery and restoration under court’s
supervision. Though it has some shortfalls, it represents
a significant improvement on the existing legal
framework.”
It is said that the success of the new law will depend on
the approach taken by the local courts and the
implementation will be critical. A sea change is involved
in the treatment methodology of debtors in the new
law. Earlier the insolvency regime was untested and
scrutinized by practitioners and market participants
According to the The World Bank, average of insolvency
process in the UAE that results in a recovery for creditors
on the dollar, takes 3.2 years with a cost to the estate of
20 per cent of the estate which is much more than
Singapore or the United Kingdom with figures for
recovery of 88.7 and 88.6 cents on the dollar, taking 0.8
and one year, with a cost of four and six percent.
For more information contact:
Vipul Kothari TEL+971 4 3526330 | [email protected]
pte
October 2017
International Conference 2017, 22-25 October Barcelona, Spain
November 2017
UK200Group event 2017, 15-17 November Newcastle upon Tyne, UK
February 2018
IAPA Asia Pacific sub-regional meetings Dates tbc
May 2018
IAPA EMEA Conference 2018, 25-27 May 2018 Oslo, Norway
September 2018
IAPA Latin American Regional Conference 2018, September Punta Cana, Dominican Republic
BHD Canadian Conference 2018, September
October 2018
IAPA International Conference 2018, October Miami, USA
IAPA future conference 2017/2018
