A Critical Appraisal of the Objectives of Administration Mechanism for Business Rescue Under Section 443 of the Companies and Allied Matters Act (CAMA) 2020
Keywords:
Administration, Business-Rescue, Companies, Insolvency, CAMA-2020Abstract
The nature of corporate organization is such that requires that it may need finances from sources that demand repayments on certain agreed terms; if it fails to repay as at when agreed, it tends to be said to be insolvent. Instead of allowing liquidation of such company because it is unable to repay its debt, administration can be used revive and if possible bring-back the company to its feet. Administration ensures the rescue of insolvent corporate organizations. This paper anchors on the objectives of administration as business rescue mechanism under the Companies and Allied Matters Act 2020. According to this study, the 2020 Companies and Allied Matters Act's introduction of administration has greatly raised the likelihood that rescue mechanisms will be used to bring failing businesses back to life. Suggestions include improving the environment for corporate or company rescues in the nation through appropriate implementation and educating stakeholders on the value of administration as stipulated in the Companies and Allied Matters Act 2020.
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