Chief Justice Paul Baffoe-Bonnie has emphasised the need for the judiciary and insolvency practitioners to prioritise the rescue of viable distressed businesses in Ghana. He made the remarks at an induction ceremony organised by the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana as part of activities marking the institute's 20th anniversary. The Chief Justice stressed that liquidation should be considered only when efforts to revive an enterprise have failed.
According to the Chief Justice, financial difficulties should not automatically result in the closure of a business, particularly where there is a realistic prospect of recovery and preservation of jobs and investments. He noted that the enactment of the Corporate Insolvency and Restructuring Act, 2020 (Act 1015), had significantly changed Ghana's approach to dealing with financially distressed companies. The Act encourages stakeholders to first assess whether such businesses could be rescued.
The Chief Justice said courts handling commercial disputes must also consider the broader economic and social consequences of decisions involving distressed enterprises. He urged the judiciary to promote certainty, predictability and confidence in commercial matters while taking into account the economic realities surrounding cases brought before the courts. This, he believes, will help to preserve jobs and protect investments.
Justice Baffoe-Bonnie also challenged insolvency practitioners to complement their technical expertise with sound judgment, independence, integrity and courage in the discharge of their responsibilities. He said practitioners must be able to differentiate between businesses that deserved a genuine opportunity to recover and those whose continued operation would only delay an inevitable collapse.
The Chief Justice's comments were made as more than 100 people were inducted into the profession after successfully completing a masterclass designed to strengthen their understanding of restructuring and insolvency practice. The masterclass was part of CIRIP Ghana's 20th anniversary celebrations. The institute's President, Felix Addo, said the organisation remained committed to advancing professional development and improving restructuring and insolvency practice in Ghana.
Felix Addo explained that the masterclass was structured as a practical working session to equip participants with the knowledge and skills needed to practise as insolvency professionals. He described the event as one of the major activities marking the anniversary, and noted that licensed insolvency practitioners were authorised under the law to undertake administration, restructuring, liquidation and receivership.
The Chief Justice concluded by saying that “the law should not hasten the death of an enterprise which proper intervention may yet save.” He added that behind an employee's salary is a family, behind a creditor's claim may be another business struggling to survive, and behind an investment may be someone's lifetime of work and savings. CIRIP Ghana has pledged to continue strengthening the profession.
Key points
- The Chief Justice of Ghana, Paul Baffoe-Bonnie, has called on the judiciary and insolvency practitioners to prioritise the rescue of viable distressed businesses.
- The Corporate Insolvency and Restructuring Act, 2020 (Act 1015), encourages stakeholders to assess whether distressed businesses can be rescued.
- CIRIP Ghana has inducted over 100 new members after a masterclass on restructuring and insolvency practice.
