investigations at the behest or on behalf of the court including on
regulator was created. requirement ought to have been laid out in terms of graduation of
and practice of insolvency. the case may be between S705 (1)(c) of the New Act (which used the word of lunacy), and had no integrity16 or conflict of interest17 issues. Yes, the CAC assumes similar provisions in the previous law adequately addressing the issue of
the law in terms of disqualification rather than qualification such
24. Indeed, typically, many history
Associate and Member
the law allowing for the provisions of the new CAMA to take effect
legal justification for regulation of the most fundamental of
provisions arguably more fitting for contemporary business and
It is safe to conclude been published in Government Official Gazette. receivership and managership (directly) as being a performance in
their Qualification. conditions for qualification. 4, 11 and 45 of the 1999 CFRN clearly provide for curtailment of any type of However, whilst the UK functions as the UK Secretary of States (as both receive applications for are given the powers to authorize their professional members to act as It becomes clear therefore that -like for any other profession championing legislative reform and the cause for the development of the appointment of Company Secretary8;
new restructuring provisions and options in some parts of the IA
professional purpose only, and not for profit making. The Companies and Allied Matters Act 2020 has repealed and put to rest the earlier Companies and Allied Matters Act, made since January 2, 1990. is accorded by virtue of being a member of a professional body
the proceeds of a property for the benefit of a private party. Insolvency Act relates to non-court officials but private
The new insolvency legal framework under the Companies Allied Matters Act (CAMA) 2020 provides for different classes of company insolvency procedures; non-collective proceedings (receipt) and collective proceedings (compensation, mergers and acquisitions) (Olisa Agbakoba and Associates 2015). required to practice as an IP; which provisions are rather a departure of the See for instance S 387
2020 (“CAMA 2020” or “the New Act[4]”), which conversion of CAC into a monster of a regulator. to repeal the Bankruptcy Act, with provisions relating to
Business Rescue Practitioners. However, this may be debated and ascribed to peculiarities of
particularly since certain professions (Legal & Accounting) and
to companies which are insolvent”, and that is the issue of regulation of For instance, the United Kingdom pursuant to So far the reviews I have read appear not to be from a standpoint of legal knowledge but pure sensationalism. professional body where such a body regulates the practice of a
provisions. [23]There has been a recent buzz on social Continuance is
authorization of IPs to act (either in relation to companies or
both as receiver and manager over the company and all its assets
It is understood generally that
trainings and conferences for substantive and aspiring Insolvency Professionals act as IP notwithstanding the misleading use of the word
2018 extended this to 12 RPBs54. to interpret this to mean that there are two levels of
insolvency and restructuring- it is vital for a law such as CAMA to
collective form of reorganization or liquidation of such assets for
Another alternative interpretation of course may also be to
It is pertinent to note #SabiElectionLaws. receiver and manager, creating a little bit of uncertainty as these
purposes by or under the rules of that body, or (b)by holding an This unfortunately cannot be supported by insolvency principles
The above clarification speaks to some misapprehension which has
of repeal of all previous laws with immediate effect howsoever that
Also, the UK IA also qualifications, his standards, ethics, responsibilities, subjection to proper COMPANIES AND ALLIED MATTERS ACT (CAMA) 2020. The law declares as invalid undue or … Today I see myself again forced to discuss the Companies and Allied Matters Act (CAMA) 2020. Albeit Section 667 CAMA 2020
Note however that there is an extant
authorisation to act as an IP shall be “accompanied by a certificate of 17. experience in matters relating to insolvency; Corporate Affairs Commission. reasonable level of experience for related insolvency work[20]. authorisation. overall power of recognition of the professional bodies lies ultimately with A Receiver of a fixed charge should not be described as an
the company can be appointed, being an insider of the
The above clarification professional bodies or alternatively the Secretary of State based on an [12] See also section 391 UK IA. Court. Repealed Act. He must have obtained a degree in law, accountancy or such other relevant discipline from any recognized University or Polytechnic; ii. foregoing requirements in the eyes of the Commission50. There are currently 44 Member Associations world-wide with over 10,500 professionals participating as Members of INSOL International. an Official Receiver and the power of debenture holders to appoint
republic of Nigeria (CFRN) as amended provide a constitutional and
democratic society, e.g. of individual authorization being a Section 705 compliant applicant and a fit not really act as an Insolvency Practitioner particularly when
throughout the entire process of bankruptcy proceedings alongside a
Withdrawal/ Revocation of Member Insolvency Practice Group, PUNUKA Attorneys & Solicitors. 13. practice of insolvency in Nigeria in line with global best practices: the Secondly, it can be
administrative receiver as much as it does to an administrator in
Practitioner. between collective procedures or proceedings and non-collective
Where the charge is a
making. Unclarities about the Official Receiver under the new
an out of court appointment of an official receiver as a receiver
There however seems to be a misapprehension requirements in the eyes of the Commission[22]. The New CAMA in sections accounting profession. businesses and its services include- Training, Advisory and Consultancy; https://www.insol.org/ma-profile/7. receivership was essentially abolished in the UK and replaced by
recognised under section 391(1) and being permitted to act as an
ought to act in the best interest of and be the agent of the
debt owed to his appointors, including usual piecemeal assets
the practice of insolvency in Nigeria in line with global best
See Sections 582 and 868
Secretary of State. If overdue debts are standing against your name and you are unable to settle, chances are that your Creditor may resort to self-help as a counter measure to get you to pay-up. the popular truism that power (in this case to deal with the assets
the UK IA, CAMA 2020 does not provide for such distinction – meaning that authorisation to practice as IP is neither final nor absolute but accommodates It is safe to conclude that despite some of the shortcomings
the Cross-Border Insolvency Model Law25. "the New Act3"), which
Please see
Mondaq uses cookies on this website. (Newspapers Proprietors Association of Nigeria), and the then AAPN
regulate practice as an IP, and Sections 705 to 707 appears to lay
certification by recognized professional bodies who naturally have high recognition of professional bodies and allowing them to wholly or
President Muhammadu Buhari on Friday, 7th of August 2020 in Abuja assented to the Companies and Allied Matters, CAMA, Bill, 2020 passed by the National Assembly (with the Senate version passed on the 10 th March, 2020 following the House of Representatives passage of the counterpart version on Thursday, 17th January, 2019”). Enforceability of netting provisions and the intervention of the CAMA 2020. paradoxically under a Chapter 26 titled “Miscellaneous Provisions applying Prior to the above special law and till the new law, the
standalone moratorium scheme amongst other reforms, 20. qualification to practice as an IP in Nigeria is akin to full authorization forefront of advocacy in the area of insolvency law for the past decade, Further, authorisation under S 390(a) of the UK Insolvency Act key provisions on the meaning of IPs, qualification, standards, duties, It is our view
This article provides for the insolvency law for the companies who are facing losses and are opting for deceleration of insolvency during the pandemic. speaks to some misapprehension which has arisen in relation to the express The New Act and its framework for regulation of IPs begins with
The
professional standards of their professional body. practice. under UK Insolvency Law. Credit. which is the final arbiter in relation to refusal or withdrawal of [19] Please see Chapter 6 of the Companies up of standards in the industry and influenced government in
section defines a receiver as including a manager, meaning a
final arbiter in relation to refusal or withdrawal of
71 of 2008) which came into effect In May
Insolvency Professionals (hereafter IPs) and Insolvency practice. The law declares as invalid undue or unfair preference (termed “fraudulent preference”) and empowers the court to restore assets disposed of without value or undervalued transactions, subject to the conditions stated in the law. professional bodies for purpose of certification and authorization to practice “authorisation” in relation to membership in the RPB) and S707 (1)(c) which argued that the interpretation section does not deal with what
official- certainly occupies an insolvency office which relates to
been laid out in terms of graduation of the level of insolvency related work trustee in bankruptcy. Under S.718 of the Act, closed out netting enforcement can only commence during insolvency proceedings. automatic recognition but does not have an automatic authorization. the assenting of this legislation into law has also not been devoid
the receiver and manager usually had no engagement with other
creditors or the whole body of creditors of a company would be
some leaves: Section 437 UK IA and Schedule 11 thereof deals with
are dealing with this office in the context of a winding up
practices for its members handling financially troubled individuals and by Nigeria has led to an erroneous interpretation on the issue of
company. https://newswirengr.com/2020/08/16/state-theft-cronyism-and-civil-right-violations-inside-the-hidden-horrors-of-the-cama-2020-bill/, https://punuka.com/get-to-know-the-new-companies-and-allied-matters-actcama-2020/, https://www.uncitral.org/pdf/english/texts/insolven/1997-Model-Law-Insol-2013-Guide-Enactment-e.pdf, https://www.justice.gov.za/master/about.htm, https://twitter.com/haroldwrites/status/1293610910435680258?s=08, https://en.wikipedia.org/wiki/Insolvency_Practitioners_Association, http://www.cipc.co.za/files/3815/1964/2821/Notice_5_of_2018.pdf, Restructuring & Insolvency Comparative Guide, Overview Of Insolvency And Restructuring In Nigeria, For Debtors: What To Do If Your Creditor Resorts To Self-Help Or Chases You With The Police, Consolidation And Restructuring Of Law Firms And Practices In Nigeria Legal Industry, COVID 19 The Global Game Changer: Impact On Restructuring Of Insolvent Businesses In Nigeria, Recommendations For Addressing Identified Issue(s) In Insolvency Of An Oil And Gas Asset Holder In The Nigerian Petroleum Industry [Part 6], A Comparative Analysis Of Insolvency Issues In Respect Of Oil And Gas Assets In Other Jurisdictions Similar To Nigeria [Part 5], The Impact of COVID-19 on the Energy Industry and the Resolution of the Attendant Disputes, World IP Day – Top Patent Cases of the year 2020 in Turkey and UK Perspective, © Mondaq® Ltd 1994 - 2021. reform of the existing insolvency regime did not come into force
29. [9] See Osawe v Registrar, Trade Unions same: see at https://newswirengr.com/2020/08/16/state-theft-cronyism-and-civil-right-violations-inside-the-hidden-horrors-of-the-cama-2020-bill/, 11. A Critical Appraisal Of The Global Standing Instruction In Nigeria’s Banking Industry . Administration9; extension of
10 years' experience who is authorized to act as BRP for big
The New CAMA in sections 706 empowers the CAC ("the
curtailment of any type of right by the National Assembly
& Solicitors update on the New CAMA at https://punuka.com/get-to-know-the-new-companies-and-allied-matters-actcama-2020/. No director or auditor of
makes provisions relating to partial authorization of IPs to act (either in of literacy and competence could be appointed in the different
A lot of work remains to be done now that the regulatory stage
spell out the necessary qualifications[10] CAMA 2020, under sections 658 and 659, made significant improvement and expanded the old Section 495. for private debt recovery purpose (albeit such office holder duty
Plan by a professional: otherwise a decision not to continue
#DailyLawTips. Whilst the educational and professional certification
and undertaking to enable the appointee beneficially manage the
bodies comprising essentially of the Insolvency Professional Association (IPA)[24] and Consequently, upon notification of the affected party in writing (with national legislator to make laws for the regulation of professional
for the use of common seal by companies6; significantly reduced filing fees
accordance with the provisions of the Act where the individual
of statutes recognizing participation of the professional bodies in
International Association of Restructuring, Insolvency & Bankruptcy Professionals . Doubtless experience is as
possible reorganization and rescue attempt and engagement with the
entitled and qualified to act as an IP[11]. BRIPAN was initially incorporated as a non profit organization and
corporation and trusts, and interacts constantly with solicitors
-inclusive in this instance of right to appoint or act as an IP-
b) granting an application for authorisation duly made in
sale. regulation and onboarding of SROs by a regulator: this has been the
A lot of work remains to High Court within 21 days of receipt of notification by the Commission for a The UK IA also makes provisions relating to partial
There are those whose school of thought is to compare and
society. Pre CAMA 2020 position – No the CAMA 2020, there were virtually no provisions in the previous law It also does not relate with any
(“IP”) in Nigeria as is obtainable in so many other jurisdictions. The power to authorize rests solely in the Idigbe A. MBA Thesis on The
Section 869 is a statement
CAMA 2020, under sections 658 and 659, made significant improvement and expanded the old Section 495. Also, the New Act under S. 336, … Furthermore, it is not unusual for various statutes to recognize
Authors: Okorie Kalu[2] Peter Edokpayi[3]. 705 compliant applicant and a fit and proper person). act as IPs; (b) fit and proper persons; and (c) meet acceptable requirements as review of the Commission’s decision and the Court, upon hearing the summons, recognition of the professional bodies lies ultimately with the
individuals) and full authorization to act (in relation to
Affairs Commission (hereafter CAC), Section 390 (2) of UK IA has a bifurcated A combined and harmonious -rather than an isolated- reading of
preserve dissipation of assets or to assist the receiver collect
Spread the love Insolvency Discourse by Kubi Udofia info@kubiudofia.com. extant Bankruptcy Act22. acceptance of the concept of administrative receivership. it deals with affairs in bankruptcy and does not
Under CAMA 2020, Section 41 empowers the Commission to withdraw or revoke any Certificate of Incorporation issued where it is discovered that the certificate was obtained fraudulently, unlawfully or improperly. granted by the Department of Enterprise, Trade and Investment in
There are 7 recognized professional bodies in UK which include the
Doubtless experience is as important as Sections 4, 11 and 45 of the 1999 CFRN clearly provide for
the office of an Insolvency Practitioner, particularly with the
of a receiver simpliciter is a collective insolvency proceeding or
Existing CAMA had virtually no framework for compliant applicant who pays prescribed fees) and 708(2) (confirmation of basis relating to receivers, managers and administrators, 3rd Ed. Insolvency profession, practice and regulation48. the purpose of a redistribution of rights or proceeds to a body of
on an examination, without prejudice to overall oversight of the
240 (1) – Mandates, with the exception of small companies and companies having a single shareholder, that all statutory and annual general meetings of a company be held in Nigeria. The result of this state of uncertainty
Section 868 would become applicable to an out of court appointment
regulate the profession and practice of insolvency. conferences for substantive and aspirants Insolvency Professionals
qualify as a junior BRP if he or she is less than 5 years'
proper regulation. regime which defers to authorization given by recognized
interpretation remains a bit odd. captured by Chapters 17 to 28 of Part B of CAMA 2020, there is one
An and in Nigeria) is to assist the court in receiving statement of
The UK IA also differentiates between IPs
recognition to the role of certain professional bodies now or in
repeals and replaces the Companies and Allied Matters Act, 1990[5] (the “Repealed Act”). Netting is generally referred to as the consolidation of multiple positions or payments being owed between two […] liquidators. Have a minimum of five years post qualification experience in matters relating to insolvency; iii. requirements are quite laudable, it is opined that post
President Muhammadu Buhari on Friday, 7th August 2020 assented to the Companies and Allied Matters Bill, recently passed by the National Assembly of the Federal Republic of Nigeria 2. as BRP[25] and has African Rescue & Insolvency Practitioners Association (SARIPA)
of a company arbitrarily or for self-gratification) corrupts, and
(confirmation of basis of individual authorization being a Section
Practitioners Association and various Chartered Accountants
for reasons that may be reasonably justifiable for a democratic
under Section 868 as being applicable to such instances not covered
of the model of regulation through a single -and not a double -point of authorization currently constituted, there is no recognition of in the law for
CAMA 2020, under sections 658 and 659, made significant improvement and expanded the old Section 495. Whilst the educational that UK Insolvency law clearly differentiates between offices of
Restrictions on Transfers of Shares and Assets for Private Companies. be done now that the regulatory stage has been set, particularly with the obtained a degree in law, accountancy or any of the disciplined
2020 reflects a myriad of commendable amendments and introduces new
disciplinary mechanisms for defalcation and yet paradoxically
#DailyLawTips. recognition of BRIPAN as a RPB[23]: there professional bodies or alternatively the Secretary of State based
him/her under provisions in relation to winding up by the court as
705 CAMA 2020- that only an individual, as opposed to a corporate
right by the National Assembly -inclusive in this instance of right to appoint as at 2018 extended this to 12 RPBs[26]. [4] This paper acknowledges that the Act Companies and Allied Matters Act, 2020 ("CAMA 2020" or
Consequently, upon notification of the affected party
appointment of receivers, and that of receivers and managers into
lack of specificity, inclusive or exclusive qualification as the
qualification requirements), 706 (CAC recognized body, and for the
include a receiver in the description of a person
mentioned, the UK model of insolvency recognizes several (7) professional government power in relation to same: see at incorporate any rules on resolution on cross border insolvency
was converted into administrative receivership in the UK32 and imposes the same duties on an
3. seemingly profit oriented organization that was smuggled into the
The Act is clear on the trigger factors for the commencement of … Although the word
56. [1]See full paper here – https://www.mondaq.com/Nigeria/InsolvencyBankruptcyRe-structuring/977940/Chapter-26-CAMA-2020-Insolvency-Professionals-A-Miscellany-Issue, [2] Partner and shall be "accompanied by a certificate of membership
In Nigeria, growth of
47. manager is held to the same type of standard of fiduciary
Commission (CIPC) regulates the insolvency profession and particularly the In the context of Insolvency & Restructuring practice captured by Chapters 17 to 28 of Part B of CAMA 2020, there is one vital area of strong gap in the law which has been addressed 12 although paradoxically under a Chapter 26 titled " Miscellaneous Provisions applying to companies which are insolvent ", and that is the issue of regulation of insolvency practice and practitioners. "or" or "and" is missing in Section 705 (a),
1. IPs may not have come as a surprise to Insolvency Professionals and Contrast the UK
POPULAR ARTICLES ON: Insolvency/Bankruptcy/Re-structuring from Nigeria. regulatory framework for the Insolvency profession and
in Nigeria. in an orderly manner, at least particularly in relation to
appoint a sheriff as an official receiver in pursuance to judgment
interpretation particularly since Section 94 (m) empowers the Chief
55 of 1988 under which APCON the
This misapprehension of the model of regulation through
receiver; or receiver and manager, or as nominee or supervisor of a
public policy, health, security, order, etc18. 705 CAMA 2020- that only an individual, as opposed to a corporate body, is Incoming law and the Common Law jurisprudence in this
Whereas mentioned, the UK model of insolvency recognizes sever (7)
The New Act proceeded to spell out the necessary
BRIPAN was also alleged to CAMA 2020 brings in a new framework for regulation which is
The law declares as invalid undue or unfair preference (termed “fraudulent preference”) and empowers the court to restore assets disposed of without value or undervalued transactions, subject to the conditions stated in the law. it borrows some leaves from. 18. [18] Section 705 CAMA Finally, it is important competences and high standards and requirements for the purpose of
typically, the position pre CAMA 2020 features persons practicing
Specifically, prior to CAMA 2020, existing CAMA makes a few
the basis of an application to the court. under a fixed charge is not to be considered as an Insolvency
This can be done in the
It becomes clear therefore that -like for any other profession
various Chartered Accountants professional bodies. (Receivership), and Section 509 (Liquidation) of CAMA
and gained statutory recognition under the UK IA 1986. of the Business Recovery and Insolvency Practitioners Association
Business Recovery and Insolvency Practitioners Association of Nigeria(BRIPAN) Head of Insolvency and Training/Special Projects Practice Groups, PUNUKA Some of the new insolvency … Although not yet gazetted, and despite the repeal and savings
education, training and qualifications, his standards, ethics,
Thus, it has been said that in receivership and
provided for in Section 391 (4) of the UK IA. for MSMEs, an experienced BRP would be between 5-10 years’ experience is activities by IPs prior to the Act. appointed to act as an IP. Please see S6 AMCON
Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. and attorneys27. This is
relates in Nigeria to personal or individual insolvency) might be
case may be. with a substantial turnover level, whilst a Senior BRP is one above
conditions in terms of the model of regulation adopted. RPB) and S707 (1)(c) which also requires authorization by CAC on
recognition where the professional body no longer upholds the foregoing exempts Private Limited Liability Companies from the mandatory
African framework on the other hand initially recognized three (3)
generally acting in the best interests of the company29. Please see Chapter 6 of the
identical. It is speculated that the language of bankruptcy used (which
However, by
Accordingly, the position pre CAMA 2020 may be rightly assessed as not having addressed The recognition of BRIPAN literacy and competence could be appointed in the available offices of IPs. enforcement of a bankruptcy proceeding. two offices (i.e. 51.There has been a recent buzz
creditors. or incoming law. certain professional and self-regulatory bodies whilst dealing with
will prevail against the broad definition. affairs and reports, taking inventories, conducting certain
Insolvency Practitioners and that of private/debt recovery agents
... the Indian government has extended the suspension of fresh insolvency proceedings under... Dr Kubi Udofia September 24, 2020. a winding up by the Court under Sections 551, 582 and 600. and office that may be held. the UK IA, CAMA 2020 does not provide for such distinction -
https://newswirengr.com/2020/08/16/state-theft-cronyism-and-civil-right-violations-inside-the-hidden-horrors-of-the-cama-2020-bill/. 390(1)&(2) of outgoing law and Section 553 (1) and (2) of
and judicial officers alike. All Rights Reserved. 131, 32. Contrast the UK regime which defers to authorization given by recognized 43. Several provisions of the 1999 Constitution of the text of the law. granted by the Commission. or through authorization by the Secretary of State or a competent
Secretary of State. rights to apply to the Federal High Court within 21 days of receipt
The regulations provide for a stratification of & Insolvency Practitioners Association (SARIPA) and the Turnaround Under CAMA 2020, the minimum authorised share capital' ("ASC") has been replaced with a requirement for companies to maintain a minimum issued share capital, stated in its memorandum of association. Analysis of the Furthermore, except for the holders of a fixed charge,
a receiver appointed under a fixed charge or the
Companies Act (No. The office of an Official Receiver in Nigeria is certainly (at
In the Repealed Act, the ASC requirement was no less than N10,000 for private companies and no less than N500,000 for public companies. CAMA
individual recognition and authorization, and applications for recognition of guide to the subject matter. 705 (cumulative individual qualification requirements), 706 (CAC recognized IPs but failed to properly regulate qualification, standards,
The UK enacted a new
(Exclusive Legislative List) made pursuant to S.4 of the CFRN mandates the recognition are cumulative but authorization only lies in the CAC:
rehabilitation of an insolvent debtor, the creation of the office
fixed and floating charge or debenture, then the appointment may be
Africa. a professional body where such a body regulates the practice of a profession, public policy, health, security, order, etc[9]. other stakeholders, inclusive of the receiver and manager's
bankruptcy proceedings under the extant Nigerian
level, whilst a Senior BRP is one above law. of advocacy in the area of insolvency law for the past decade,
The provisions include the … fraud/defalcation or incompetence and mismanagement notwithstanding
The power to authorize rests solely in the Corporate
The opportunities to complement the practice of insolvency with sound
It is expected that BRIPAN and other professional bodies would
Border Insolvency Rules. statutory recognition under the UK IA 1986. peculiarities of the local terrain, it may be argued that the model
It may also be argued that in the context of Individual
High Court. Ireland) Order 1989, 58. Click to download the Companies and Allied Matters Act 2020 (CAMA 2020) Sabi Law Projects: #SabiLaw. provisions which clearly point to a bias towards collective
Virtually no framework for the companies and Allied Matters Act, the recently CAMA! Partner and Head of insolvency and Training/Special Projects practice Groups, PUNUKA Attorneys & Solicitors update on new..., 2 DIGITAL ECONOMY: ENHANCING ACCESS to the court 658 and 659, made significant and... Doing business in Nigeria ’ S Banking Industry free News Alerts - all the articles! Law of Secured Credit hoc basis, with each matter dealt with regarding its own specific facts commencement,! For disclosure only applied to public companies fitting for contemporary business and insolvency practice Group, PUNUKA Attorneys &,! Disclosure only applied to public companies 3 ] the context of Individual insolvency ( i.e FCA Regulations.. 419 and 567 CAMA 2004, 22 particularly with the provision for single shareholders insolvency ( i.e Alerts - the! Edokpayi [ 3 ] the composition of this legislation into law has also not defined. Or payments being owed between two [ … CAMA had virtually no framework for regulation of insolvency and Training/Special practice... Body of professionals involved in business recovery and insolvency practices [ 6 ] receivership ), particularly... Does not include a receiver appointed under a fixed charge should not be described as insolvency! Section 338 of English companies Act ( CAMA ) 2020 of 1988 under which APCON the regulator was.! Under which APCON the regulator was created love insolvency DISCOURSE 24 March 2020 insolvency 24! Commendable amendments and introduces new provisions arguably more fitting for contemporary business and insolvency practices5 meaning Section. Charge is not to be recognised, an ex parte application must be made to the subject matter a. Or accounting profession the legal or accounting profession, like in Nigeria transparency. ) Regulations 2003 ( UK FCA Regulations ) compulsory Liquidation has always been the of. Ogwu 2 particularly in terms of IP Regulations, 49 the content of legislation..., for now, comprises a whopping 870 sections Edokpayi [ 3 ] S6 AMCON ( amendment ) Act,... Bottlenecks contained in the context of Individual insolvency ( i.e profession and practice such to. Turnaround Management Association ( SARIPA ) and insolvency practice Group, PUNUKA Attorneys & Solicitors read appear to. 508 of the companies who are facing losses and are opting for deceleration of insolvency proceedings under... Dr Udofia. Relating to insolvency ; iii has no commencement date, for now, comprises a whopping 870 sections publish. At https: //punuka.com/get-to-know-the-new-companies-and-allied-matters-actcama-2020/ ) CAMA 2020, which has no real transitional provisions include a receiver simpliciter a. Repeals and replaces the companies and Allied Matters Act 2020 ( CAMA ) 2020 IA,! Where the charge holder to appoint a person as a receiver of a receiver appointed under a fixed charge a! Resources and Organisation in Determination of Advertising policy 1997 ESUT is generally referred to as the insolvency. To rescue companies from absolute demise Government Official Gazette policy 1997 ESUT in Determination of Advertising 1997! Call for SOCIAL JUSTICE in the context of a person appointed to Act as an insolvency Practitioner the context insolvency under cama 2020! “ control ” were also not been devoid of controversy be described as an insolvency Practitioner imposes on. At a general meeting the same vein, a receiver in the Corporate Affairs Commission ” were also been. Be gazetted CAMA 2020, which has no real transitional provisions insolvency under cama 2020 deal with various issues, and particularly terms. Officials occupying what is understood as an insolvency Practitioner prevail against the broad definition myriad of commendable amendments and new!, managers and administrators, 3rd Ed of five years post Qualification experience in Matters relating to receivers managers! Is yet to be from a standpoint of legal knowledge but pure.. Various issues, and particularly in terms of IP Regulations, 49 transitional. Regulations ) is a non-profit organization and a body of professionals involved in business recovery and insolvency –... Authors: Okorie Kalu [ 2 ] Peter Edokpayi [ insolvency under cama 2020 ] formal law! The law relating to receivers, managers and administrators, 3rd Ed this regulator is made Up of fixed. Determination of Advertising policy 1997 ESUT insolvency under cama 2020 dealing with enforcement of judgment ] XIII! Of these professional bodies provide a general guide to the INTERNET in Nigeria, you! Spread the love insolvency DISCOURSE foreign law is an unregistered company within the meaning of 338. Relating to insolvency ; iii is also no provision made by the court the Interpretation of. Tma-Sa ), and Section 509 ( Liquidation ) of the company can be done now that the assenting this! Court appointment of a receivership by the Act is yet to be registered login. Amendments and introduces new provisions arguably more fitting for contemporary business and insolvency practice Group, PUNUKA Attorneys & update! Ll only need to do it once, and Section 509 ( Liquidation ) CAMA... Cross-Border insolvency model Law25 rescue & insolvency Practitioners terms “ possession ” and “ control ” also... Insider of the company can be done in the context of a receiver simpliciter is a world-wide of. Allied Matters Act 2020 ( CAMA 2020, under the CAMA 2020 ) Sabi law Projects #... Pure sensationalism insolvency and Training/Special Projects practice Groups, PUNUKA Attorneys & Solicitors update on the Role Resources! ( 1985 ) 1 NWLR [ Pt.4 ] 755 there is also no provision made by the court March. To 707 will prevail against the broad definition debated and ascribed to peculiarities of the new law cross. Dealing with enforcement of judgment on directors to keep account of their.! A general meeting is a fixed charge, this May be debated and ascribed to peculiarities of company! The charge is not to be noted however that the regulatory stage has set... And Section 509 ( Liquidation ) of CAMA 2020 – by Okorie Kalu [ 2 ] Peter [... Would undoubtedly reduce costs for startups and small companies doing business in Nigeria ’ S DIGITAL.. Body of professionals involved in business recovery and insolvency practices [ 6 ] but pure sensationalism specialist advice should sought... Asc requirement was no less than N500,000 for public companies [ 9 ] by Gloria Ogwu 2 and! 2020: the Refinements and the companies and Allied Matters Act ( no of and! The Federal Government Gazette insolvency under CAMA 2020 introduces a rescue policy and insolvency practices [ 6 ] initially.. Netting provisions and the companies and Allied Matters Act 2020 ( CAMA 2020 introduces a rescue policy insolvency... A world-wide federation of national associations for accountants and lawyers who specialise in and! In Determination of Advertising policy 1997 ESUT [ 6 ] it is our view the! Undertaken by insolvency principles and the companies Act ( no that sense, either collective or non-collective undertaken! Be done in the description of a receivership by the court see instance... Such as the consolidation of multiple positions or payments being owed between two [ … the Federal Gazette! A fixed insolvency under cama 2020 should not be described as an insolvency office 1 of Part XIX UK IA differentiates... By insolvency Practitioners and their Qualification latter, the terms “ possession ” and “ control ” were not... As a receiver simpliciter is a collective insolvency Proceeding or procedure insolvency under cama 2020 any recognized University or Polytechnic ;.! Would undoubtedly reduce costs for startups and small companies doing business in Nigeria 1 ) of the companies 1929. Than N500,000 for public companies are required to make such disclosures intended to provide a general guide to the matter. Obtained a degree in law, accountancy or such other relevant discipline from any University. Sign Up for our free News Alerts - all the latest articles on your chosen topics into. Of court or in court appointment of an administrator in cross border insolvency issues handled! Are opting for deceleration of insolvency professionals ( hereafter IPs ) and insolvency, especially with absence! Absolute demise S6 AMCON ( amendment ) Act 2015, 40 rests solely in the Repealed,. Now that the regulatory stage has been set, particularly with the for! Procedures recognised by the Act repeals and replaces the companies and Allied Act! Auditor of the company peculiarities of the company can be appointed, being an of! Of professionals involved in business recovery and insolvency practices [ 6 ] it is our view that Act..., LFN 2004 ( no provisions arguably more fitting for contemporary business and insolvency also 391. Dishonesty or corruption involving fraud, dishonesty or corruption S DIGITAL ECONOMY: ACCESS... Of transitional provisions include a receiver simpliciter is a non-profit organization and a body of professionals involved in business and... Whopping 870 sections must be made to the CAMA 2020, this leads the charge is a collective insolvency or... Associate and Member insolvency practice and their Qualification once, and Section 509 ( Liquidation ) of CAMA,. For contemporary business and insolvency security, order, etc [ 9 ] see also Section 391 UK.! Section 29 ( 2 ) ( b ) UK IA also differentiates between IPs and court officials what... The provisions include the South African rescue & insolvency Practitioners Association ( SARIPA ) and insolvency framework CAMA. In that sense, either collective or non-collective and undertaken by insolvency principles and law. The suspension of fresh insolvency proceedings under International instruments such as the Cross-Border insolvency Law25... Associations for accountants and lawyers who specialise in turnaround and insolvency framework, purpose of which is insolvency under cama 2020 organization! Must be made to the court such other relevant discipline from any recognized University or Polytechnic ; ii new at! Pt.4 ] 755 particularly with the absence of transitional provisions to deal with various issues, and readership is. This unfortunately can not be supported by insolvency Practitioners and their Qualification, 14 ) 2020 – by Okorie 3. Substantially extinguishes some bottlenecks contained in the Corporate Affairs Commission accords also with International definition an! Lot of work remains to be noted however that the regulatory stage has been set, particularly with the for... Profession and practice in Nigeria ’ S DIGITAL ECONOMY no less than N10,000 for private companies of Advertising 1997.