By Robert Hart, Staff Reporter

MORE THAN 10 years after a review of the existing company laws in Jamaica, the House of Representatives yesterday, for the second time, passed legislation aimed at modernising the regulation of companies.

The new legislation will now go to the Senate after being sent back to the House and referred to a committee two years ago.

The debate on the Companies Act 2004 was concluded in the House of Representatives yesterday after being piloted by Phillip Paulwell, Minister of Commerce, Science and Technology, last week.

The Bill, which seeks to repeal and replace the Companies Act of 1965, fuelled little controversy as Opposition Members of Parliament Karl Samuda and Delroy Chuck gave it their full support.

"It is one of the most significant pieces of legislation we have dealt with in years," Mr. Samuda, the Opposition spokesman on industry, said during his contribution to the debate. Both he and Mr. Chuck were on the joint select committee that examined the Bill.

PREVIOUSLY-AIRED CONCERN

However, Mr. Samuda also found time to reiterate a previously-aired concern. Making reference to the United States' concept of Chapter 11 bankruptcy, in which a company or individual can be afforded a chance 'to start again,' he suggested that Jamaica adopt similar provisions in local law.

"A company in operation may be put into bankruptcy by one or two creditors to the detriment of a large number of other people. And under our provisions there is nothing to prevent that," he said.

Mr. Chuck, during his contribution, noted that the modernised company laws would make it much easier to form a company.

At the same time, Aloun Assamba, Minister of Industry and Tourism, added that the Bill would "allow us to catch up with modern methods of conducting business."

In August 1990, the Government established a committee, chaired by Dr. Ken Rattray, to examine the state of company laws in Jamaica. A report was issued in 1993, making several recommendations on areas of the laws that the committee believed were in need of attention. The Government subsequently accepted the recommendations as the basis for making changes to the Act.