DIFC Insolvency Law, DIFC Law No. 1 of 2019chapter by chapter

Insolvency Law Art 53Officer co-operation

An Officer of the Company must cooperate with the Liquidator, with non-compliance leading to fines up to USD 15,000.

Insolvency Law Art 54, 56-58Voluntary winding up

The Company must pass a Resolution for Voluntary Winding Up, advertise it within 14 days, and notify the DFSA if it is an Authorised Person.

Insolvency Law Art 59Voluntary winding up

In a Members' Voluntary Winding Up, Directors must declare solvency within 5 weeks prior to the resolution and submit it within 30 days, incurring fines for false declarations.

Insolvency Law Art 64Voluntary winding up

The Liquidator must submit a statement of affairs within 7 days if they determine the Company cannot pay its debts.

Insolvency Law Art 80, 106(5)Resignation

Prior to resignation, the Liquidator must notify the Court, creditors, the Registrar, and the DFSA, and call a creditors' meeting to discuss a replacement.

Insolvency Law Art 105, 137Dissolution

A Company is dissolved 3 months after the final account is sent, unless early dissolution is noticed 28 days in advance.

Insolvency Law Art 116Name restriction

Former Directors of a company entering insolvency cannot serve as Directors of similar companies for 5 years without court permission, facing potential fines.

Insolvency Law Art 130Co-operation

Officers, founders, recent employees, and prior office-holders must provide information and attend meetings as required by the insolvency office-holder, or face fines.

Insolvency Law Art 141Public Register

Persons involved in a Voluntary Arrangement or Liquidation must notify the Registrar within 7 days of key developments and practitioner appointments.

Insolvency Law Arts 7-12Voluntary Arrangement

Directors proposing a Company Voluntary Arrangement must appoint a registered Nominee and notify the Registrar of key arrangement details.

Insolvency Law Arts 15-16Rehabilitation

Rehabilitation moratorium automatically starts from the Notification Date for 120 days, requiring a Directions Hearing with ten days' notice to creditors.

Insolvency Law Arts 24-27Rehabilitation

A Rehabilitation Plan requires approval by a three-quarters majority and has specific timelines for objections and responses from stakeholders.

Insolvency Law Arts 28-31Rehabilitation

A creditor may request Court relief from a moratorium with 10 days' notice, while contract termination only occurs after 20 days of unpaid sums.

Insolvency Law Arts 32-41Administration

The Administrator must submit a copy of the Court order regarding Administration changes to the Registrar within 30 days, or face fines of up to USD 100 per day.

Insolvency Law Arts 42-50Receivership

A Receiver must notify stakeholders on invoices and websites of their appointment and report to creditors within three months.

Insolvency Law Arts 60-61Voluntary winding up

In a Members' Voluntary Winding Up, the Company appoints the Liquidator through an Ordinary Resolution.

Insolvency Law Arts 62-63Voluntary winding up

In a Members' Voluntary Winding Up, the Liquidator must issue an annual report within three months of the year-end and send the final account to relevant parties within 14 days.

Insolvency Law Arts 65-70Creditors' voluntary winding up

In a Creditors' Voluntary Winding Up, Directors must provide a statement of affairs within seven days of the resolution.

Insolvency Law Arts 71-74Creditors' voluntary winding up

The Liquidator in a Creditors' Voluntary Winding Up must submit a year-end report and a final account to stakeholders, incurring fines for non-compliance.

Insolvency Law Arts 75-79Creditors' voluntary winding up

The Liquidator may disclaim onerous property during creditors' voluntary winding up, removing assets within 28 days of lease termination and listing them within 7 days.

Insolvency Law Arts 81-91Compulsory winding up

A Company is unable to pay debts if over USD 2,000 stays unpaid for 3 weeks, leading to an immediate winding-up order to the Registrar.

Insolvency Law Arts 92-98Compulsory winding up

In compulsory winding up, nominations can be contested within 7 days, and creditors with 10% value can request a Liquidation Committee; the final account must be sent in 14 days.

Insolvency Law Arts 102-103Compulsory winding up

A Company must state "being wound up" on invoices and letters during its winding up; if unresolved in one year, the Liquidator sends periodic statements.

Insolvency Law Arts 107-115Fraud and misconduct

Officers must not engage in misconduct such as concealing assets or falsifying records, with courts empowered to enforce repayment and compensation.

Insolvency Law Arts 123, 126Insolvency practitioners

Only registered insolvency practitioners may serve as Nominee, Administrator, Receiver, or Liquidator, with required disclosures to the Registrar and DFSA.

Insolvency Law Arts 62-63, 73-74-retRecord Retention — Liquidator year-end reports, final accounts and statements of affairs

The Liquidator must retain year-end reports, final accounts, and statements of affairs records until the date of dissolution, although specific retention duration is not stated.

Insolvency Law Art 55Advertise the resolution

The company must advertise its voluntary winding-up resolution within 14 days, stating relevant details and provide a copy to the DFSA.