The Chief Justice of Ghana, Justice Paul Baffoe-Bonnie, has urged the judiciary and insolvency practitioners to help save viable distressed businesses and only use liquidation as the last resort. He made the call at an induction ceremony of the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana, which marked the institute's 20th anniversary.
Justice Baffoe-Bonnie emphasized that financial distress should not automatically lead to the death of an enterprise, and that businesses with the potential to recover should be given the opportunity to do so. This, he said, would help preserve jobs and protect investments. The Chief Justice added that the law should not hasten the death of an enterprise that proper intervention may yet save.
The event saw the induction of more than 100 people into the profession after completing a masterclass programme organized by CIRIP Ghana. The masterclass aimed to deepen participants' understanding of restructuring and insolvency practice, as well as the professional and ethical responsibilities of practitioners.
Justice Baffoe-Bonnie noted that the enactment of the Corporate Insolvency and Restructuring Act, 2020 (Act 1015), represented a significant change in Ghana's approach to insolvency. The new framework encourages stakeholders to consider whether a distressed business can be rescued, rather than focusing solely on winding up companies that can no longer meet their obligations.
The Chief Justice also urged the judiciary to provide certainty, predictability, and confidence in commercial matters while being conscious of the economic realities surrounding cases before the courts. He charged insolvency practitioners to combine technical competence with sound judgment, independence, integrity, and courage.
President of CIRIP Ghana, Felix Addo, said the institute would continue to promote professional development and strengthen restructuring and insolvency practice in the country. He noted that the institute had the objective of improving the treatment of distressed companies with the potential to recover.
Mr. Addo said the masterclass was a key activity in the anniversary celebrations, designed to equip participants with the knowledge and skills required to operate as insolvency practitioners. A licensed insolvency practitioner has the authority under the law to undertake administration, restructuring, liquidations, and receiverships, including management of assets in distress and acting as a trustee in bankruptcy.
Key points
- The Chief Justice of Ghana urges judiciary and insolvency practitioners to save viable distressed businesses.
- Ghana's Corporate Insolvency and Restructuring Act, 2020, encourages stakeholders to consider rescuing distressed businesses.
- CIRIP Ghana inducted over 100 new members after a masterclass programme on restructuring and insolvency practice.
