The Legal Regime of Bankruptcy and Winding up Proceedings as a Tool for Debt Recovery in Nigeria: An Appraisal

Leonard C. Opara, Livinus I. Okere, Chinwendu O. Opara

Abstract


Nigeria does not have a comprehensive policy or law on bankruptcy. Individuals are declared bankrupt while corporate bodies are insolvent in the event of individuals’ inability to meet his/her total liability. A corporation may be wound up if it is unable to pay for its debt. Bankruptcy and insolvency are used in our legal theory. But the paper examines legislation on bankruptcy laws and its proceedings which have to be amended to meet the current global economic growth, so that investors may have confidence on our legal system in order to recover their debts in case of corporate insolvency or regulation legislated upon bankruptcy. Bankruptcy deals with the creditor and debtor when the debtor is unable to pay the debt of a creditor and declares bankrupt. The article recommends corporate insolvency leading to winding up and liquidation of a corporate entity and settlement of all other related issues including cross-border claims and counter claim settlement and cross-border corporate insolvency should be codified and our jurisdictions should allow the debtor and the creditor to renegotiate on the basis of their respective rights and obligations at any time using ADR mechanisms.

Keywords


Bankruptcy; Winding up; Liquidation; Debt recovery; Jurisdictions; Creditor and debtor; Insolvency; Negotiations; Litigation and ADR mechanisms

Full Text:

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References


Statues

(a) The Companies and Allied Matters Act Cap C20, Law of the Federation, 2004.

(b) The Federal High Court (Civil Procedure) Rules 2011.

(c) Cap B 2, Laws of the Federation of Nigeria 2004

(d) Company Winding Rules 2001

(e) Cap B1 Bankruptcy Rules, Laws of the Federation 2004

(f) The Constitution of Federal Republic of Nigeria, 1999 as amended.

Articles

Whether bankruptcy proceeding and winding up as a veritable tool for debt recovery. by Dr. Joseph Nwobike.

Olisa Agbakoba & Associates. Bankruptcy Proceedings as a Tool for Debt Recovery.

CL.E.S Vol. 1 No. 1 p. 3

Books

Nigerian companies and allied matters law and practice. by Deji Sasegbon.

Halsbury’s. Law of England, Fourth Edition.

Black’s laws dictionary, Eight Editions.

Companies law in Nigeria under the companies and allied matters act. by Ephraim M. Asomugha.

Principles of executorship, trusteeship and bankruptcy law. by Leonard C. Opara & Prnice Lukman Jayeola Agunbiade.




DOI: http://dx.doi.org/10.3968%2F4151

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