Project Description
Accra, Ghana, 26 September 2017 – On behalf of the Board of the American Chamber of Commerce (AMCHAM) and the Governing Council of the Ghana Association of Restructuring and Insolvency Advisors (GARIA), we express our profound gratitude to the Attorney-General & Minister of Justice Hon. Gloria Akuffo, the Panel (Prof. Bondzi-Simpson, Felix Ntrakwah, Tony Oteng Gyasi, Hon. Vicky Bright, Felix Addo, Justice V.C.R.A.C. Crabbe and Mavis Amoah), AMCHAM and GARIA Members and the General Public for honoring our invitation.
This event which focused on “Enhancing the Ease of Doing Business: Reforming the Company and Insolvency Laws of Ghana” unearthed thought provoking pieces aimed at reducing the premature insolvency of businesses in Ghana, promote corporate restructuring and update the Companies Act 1963 to reflect the modern trend in doing business.
The World Bank reports that in 2017, globally, in resolving Corporate Insolvency, Ghana stands at 155 in the ranking of 190 economies. In addition, resolving insolvency takes 1.9 years on the average and costs over 22.0% of the debtor’s estate, with the most likely outcome as the liquidation of the company. Nevertheless, even when a business goes into liquidation, current laws do not adequately protect creditors and shareholders’ interests as well as ensure a safe transition of the business.
Per the Government of Ghana Ease of Doing Business Initiative Concept Note (2017); “It is the vision of the government to transform the business climate environment with the political will to bring about the fundamental reforms to set the stage for robust growth, and position Ghana as a competitive, global business and services-based platform, with an open economy…,” The realization of this vision is premised on effective business legislation that could streamline the activities of businesses to not only preserve jobs but create employment.
Previous Attorney-Generals have made efforts to have the revised Company and Insolvency Bills passed into law and the current Attorney-General, Hon. Gloria Akuffo is very optimistic about the passage of the two Bills and assured stakeholders that the Bills which are currently before Cabinet would be sent to Parliament for consideration in due course.