Insolvency Law at Guinea-Bissau
In Guinea-Bissau, insolvency and bankruptcy are primarily governed by the Commercial Code, which outlines procedures for both voluntary and involuntary liquidation. The country has also adopted the OHADA Uniform Act on Insolvency Proceedings, effective since 2015, which standardizes insolvency laws across 17 West and Central African nations . (Understanding Liquidation and Insolvency Procedures in Guinea-Bissau, OHADA)
Types of Insolvency Proceedings
1. Voluntary Liquidation:
Initiated by a company's shareholders when it becomes financially unviable. A majority vote is required to dissolve the company, after which a liquidator is appointed to settle debts and distribute remaining assets . (OHADA, Understanding Liquidation and Insolvency Procedures in Guinea-Bissau)
2. Involuntary Liquidation:
Triggered by a court order, often at the request of creditors, when a company fails to meet its financial obligations. The court appoints a liquidator to manage the company's assets and liabilities . (Understanding Liquidation and Insolvency Procedures in Guinea-Bissau)
Rights of Creditors
Creditors in Guinea-Bissau have the right to be informed of liquidation proceedings and to submit claims against the insolvent entity. They may participate in meetings to vote on decisions regarding the liquidation process. The hierarchy of claims typically prioritizes secured creditors, followed by preferred unsecured creditors (such as employees), other unsecured creditors, and tax obligations . (Understanding Liquidation and Insolvency Procedures in Guinea-Bissau)
Role of Liquidators
Liquidators are appointed to oversee the insolvency process, including asset evaluation, debt settlement, and distribution of remaining assets. They are responsible for ensuring compliance with legal requirements and maintaining transparency throughout the process . (Understanding Liquidation and Insolvency Procedures in Guinea-Bissau)
Legal Challenges in Insolvency
Common issues during insolvency proceedings include fraudulent transfers, asset concealment, and disputes among creditors. The legal framework provides mechanisms to address these challenges, aiming to ensure an equitable distribution of assets . (Understanding Liquidation and Insolvency Procedures in Guinea-Bissau)
Legal Assistance
For individuals or entities seeking assistance with insolvency matters in Guinea-Bissau, consulting with a lawyer specializing in bankruptcy and debt law is advisable. Legal professionals can provide guidance on navigating the complexities of insolvency proceedings and protecting one's interests.
RELATED Blog
0 comments