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Bankruptcy Law Coming

US style bankruptcy protection laws are on the pipeline covering sole traders and partnerships in addition to limited liability companies.
The Private sector has been asking for bankruptcy protection laws for some time to give troubled businesses breathing space while they restructure.
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rnThe government is considering a separate act to cover business failures, since this would make it possible to cover sole traders and partnerships.rn

rnldblquote That cannot come under the register of companies. That is only for corporate entities.

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Now the debate is whether you could exclude that and enact a separate bankruptcy law or whether we are going to take partnership and sole propriety separately, dblquote Trade Minister Ravi Karunanayake says.
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rnThe bankruptcy act will give troubled businesses a moratorium on debt repayments allowing them time to restructure their operations on an agreed plan with the creditors.rn

rnThe proposed companies act also has provisions allowing business restructuring unde

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