The Ministry of Justice ("MOJ") published a Prakas on Granting of Administrator License in Insolvency Proceedings ("Prakas") on March 12, 2024. This regulation established regulations regarding the prerequisites, formalities, and processes for becoming an administrator, with the aim of optimizing the efficiency of insolvency proceedings. The issuance of this Prakas was mandated by Article 68(3) of the Cambodia Law on Insolvency, which was officially published in 2007. This provision assigned the primary task of addressing particular prerequisites for administrator licensing in insolvency proceedings to the MOJ.

Scope and authority

This Prakas is applicable to administrators involved in Cambodian insolvency proceedings. The licensing application shall be before the MOJ, which shall render a decision. The MOJ compiles and updates the national list of administrators on a regular basis; the court may utilize this list to appoint administrators in insolvency cases.

Key Requirements for Obtaining an Administrator License

Conditions

In order to qualify for an administrator license, the candidate must possess Cambodian citizenship and lack any prior record of delinquency, bankruptcy, or unethical conduct.  Critical requirements for the applicant's qualifications are as follows:

1. Possess a minimum of five years of relevant experience and a bachelor's degree or its equivalent in law, commerce, finance, accounting, audit, or business management;
2. Operate a business situated within Cambodia.

Application Procedures and Fees

The license and renewal applications will be reviewed by the MOJ within forty-five days of the date of submission.

In addition to the application form, the MOJ requires a series of supporting documents, including payment verification, a copy of identification card, copies of educational credentials, a letter of work experience, a curriculum vitae, photographs, and a criminal record.

Information pertaining to the renewal and application fees is provided in the Interministerial Prakas. It is crucial to acknowledge that in the event that the application is denied approval by the MOJ, these fees are non-refundable.

Other remarks on the issued license

The license is subject to renewal every two years during its validity period of two years. A renewal request must be submitted by applicants at least sixty days prior to the license's expiration.

Licenses issued prior to the implementation of this Prakas will continue to be valid until their expiration. Licensees are then required to submit an application for a new license in accordance with the provisions of this new Prakas.

Obligations of the Licensed Administrator in Insolvency Proceedings

The licensed administrator is required to adhere to the subsequent vital responsibilities:

• yearly submission of required reports and documents by October 30;
• notification of workplace changes and updated contact information within fifteen days of such changes;
• acquiring professional indemnity insurance from a MOJ-accredited provider (this requirement is suspended until further notice);
• ensuring that records and documents are securely stored for a minimum of six years following the conclusion of proceedings and are accessible for official inspections by the MOJ; and
• participating in training programs organized by the MOJ or other authorized institutions that are pertinent to the matter at hand.

Revocation of License and Punishments

A license may be revoked by the minister of the MOJ in accordance with a decision if the holder of the license fails to meet any of the criteria specified in the Prakas. As additionally specified, failure to fulfill the necessary responsibilities may result in administrative penalties for the administrator, such as license suspension or revocation (with a prior opportunity for the administrator to provide clarification), in addition to potential criminal and civil liabilities, if relevant.