The Right of Creditors During Insolvency Proceedings in Ghana

Kweku Ainuson

Abstract: The Corporate Insolvency and Restructuring Act, (2020) Act 1015 signaled a paradigm shift in insolvency proceedings in Ghana to offer protection to distressed companies. According to current legislation, a company in distress has the option to go through administration and restructuring before the commencement of winding up. A rescue culture serves the public good by preserving jobs, sustaining local economies, protecting livelihoods, maximizing asset value, and balancing competing interests. Though a process many years in the making, Ghana has recognized the public interest in preserving viable businesses and livelihoods by rehabilitating insolvent companies. In the same vein, creditor rights have gained much prominence with a host of options available to creditors during administration. This paper shall examine the insolvency regime in Ghana with a particular focus on its conformity or otherwise with modern insolvency practices and the protection of the rights of the creditors during the insolvency proceedings in a bid to ascertain how CIRA aids decision-making of creditors and whether its content is in accordance with best practices in modern insolvency law.

Keywords: Insolvency Law, Creditor?s Rights, Corporate Restructuring, Ghana Legal System, Business Rescue