COMPANIES ACT – AMENDMENT
(No. B/492) Mr E. Guimbeau (First Member for Curepipe & Midlands)  asked the
vice-Prime Minister, Minister of Finance and Economic Development whether, in regard to the
Companies Act, he will state if consideration will be given for amendments to be brought thereto
to prohibit the managers, the directors and the shareholders of the auditing and accounting firms
holding shares or other interests in any associated or related companies dealing in real estates or
any other businesses related to land development and promotion, to be appointed as
administrators or receiver managers by banks for asset recovery, and if so, when and if not, why
not.
The vice-Prime Minister, Minister of Finance and Economic Development (Mr X. L.
Duval): Mr Speaker, Sir, I wish to inform the House that sections 234(5) and 234(6) of the
Insolvency Act already impose a duty on the administrator to table an interest statement at the
first meeting of creditors.  The interest statement should disclose whether the administrator, or a
firm of which the administrator is a partner, has a relationship (whether professional, business or
personal) with the company in administration or any of its officers, shareholders or creditors.
In addition, section 184(1) of the Insolvency Act lays down the criteria for persons who
cannot be a receiver, while the duties of the receiver are extensively laid down in section 197 of
the same Act.
Furthermore, I am informed that the Insolvency Unit has not received any complaints
regarding any wrongdoing with respect to administrators/ liquidators having interest in real estate
and are acting as liquidator. 82
In view of the above, Mr Speaker, Sir, the question of amending the law does not arise
presently.
Mr Guimbeau: Mr Speaker, Sir, can the hon. Minister tell me if it is proper that audit
firms and accounting firms be appointed by banks to realise land assets when partners and
Directors of the same accounting  and auditing firm has interest in related and associated
companies dealing in real estate and land development?
Mr Duval: Mr Speaker, Sir, that is the situation all over Mauritius.  Now, if there has
been any wrongdoing, we have cases where there has been an abuse of the situation or creditors
or shareholders have found something wrong, it should be brought before and then we will act.
In the absence of any such information, this is the answer.
Mr Guimbeau: Mr Speaker, Sir, I can give the information, here, in the House.  There
are companies like PricewaterhouseCoopers; this  is exactly what they are doing.  They are
appointed as receiver managers to sell land assets for peanuts and then, they have their own
sisters and related companies who are in land development, and make big business.  This is not
ethical, Mr Speaker, Sir.
Mr Speaker: Please, bring this to the attention of the hon. Minister.
Mr Duval: Mr Speaker, Sir, PricewaterhouseCoopers is a respected firm in Mauritius.  It
is an international firm.  Now, if the hon. Member is saying that he has information that
something wrong has happened, then he should make a formal complaint and we will look into
it.
Mr Guimbeau: Mr Speaker, Sir, the complaint is being done now.
Mr Duval: Which case?
Mr Guimbeau: The case of PricewaterhouseCoopers which is in the land development,
Mr Speaker, Sir.  I won’t say what’s going on privately, but this is the case, Mr Speaker, Sir.
Mr Speaker: But then, I would request if the hon. Member has any specific case in hand,
he can talk to the hon. vice-Prime Minister, Minister of Finance and Economic Development and
give him all the information so that he can act.
Mr Duval: Yes and not a general accusation like that.

Sitting of tuesday 10th july 2012

(No. B/492)

Mr E. Guimbeau (First Member for Curepipe & Midlands) asked the vice-Prime Minister, Minister of Finance and Economic Development whether, in regard to the Companies Act, he will state if consideration will be given for amendments to be brought thereto to prohibit the managers, the directors and the shareholders of the auditing and accounting firms holding shares or other interests in any associated or related companies dealing in real estates or any other businesses related to land development and promotion, to be appointed as administrators or receiver managers by banks for asset recovery, and if so, when and if not, why not.

The vice-Prime Minister, Minister of Finance and Economic Development (Mr X. L. Duval): Mr Speaker, Sir, I wish to inform the House that sections 234(5) and 234(6) of the Insolvency Act already impose a duty on the administrator to table an interest statement at the first meeting of creditors.  The interest statement should disclose whether the administrator, or a firm of which the administrator is a partner, has a relationship (whether professional, business or personal) with the company in administration or any of its officers, shareholders or creditors.

In addition, section 184(1) of the Insolvency Act lays down the criteria for persons who cannot be a receiver, while the duties of the receiver are extensively laid down in section 197 of the same Act.

Furthermore, I am informed that the Insolvency Unit has not received any complaints regarding any wrongdoing with respect to administrators/ liquidators having interest in real estate and are acting as liquidator.

In view of the above, Mr Speaker, Sir, the question of amending the law does not arise presently.

Mr Guimbeau: Mr Speaker, Sir, can the hon. Minister tell me if it is proper that audit firms and accounting firms be appointed by banks to realise land assets when partners and Directors of the same accounting  and auditing firm has interest in related and associated companies dealing in real estate and land development?

Mr Duval: Mr Speaker, Sir, that is the situation all over Mauritius.  Now, if there has been any wrongdoing, we have cases where there has been an abuse of the situation or creditors or shareholders have found something wrong, it should be brought before and then we will act.

In the absence of any such information, this is the answer.

Mr Guimbeau: Mr Speaker, Sir, I can give the information, here, in the House.  There are companies like PricewaterhouseCoopers; this  is exactly what they are doing.  They are appointed as receiver managers to sell land assets for peanuts and then, they have their own sisters and related companies who are in land development, and make big business.

This is not ethical, Mr Speaker, Sir.

Mr Speaker: Please, bring this to the attention of the hon. Minister.

Mr Duval: Mr Speaker, Sir, PricewaterhouseCoopers is a respected firm in Mauritius.  It is an international firm.  Now, if the hon. Member is saying that he has information that something wrong has happened, then he should make a formal complaint and we will look into it.

Mr Guimbeau: Mr Speaker, Sir, the complaint is being done now.

Mr Duval: Which case?

Mr Guimbeau: The case of PricewaterhouseCoopers which is in the land development, Mr Speaker, Sir.  I won’t say what’s going on privately, but this is the case, Mr Speaker, Sir.

Mr Speaker: But then, I would request if the hon. Member has any specific case in hand, he can talk to the hon. vice-Prime Minister, Minister of Finance and Economic Development and give him all the information so that he can act.

Mr Duval: Yes and not a general accusation like that.