Robust insolvency framework crucial for economic recovery – Dr. Asiama

A stronger and more responsive insolvency regime is crucial to saving distressed businesses, protecting jobs, and stabilising Ghana’s economy, according to Dr. Johnson Pandit Asiama.

Delivering the keynote address at a judicial sensitisation programme on insolvency and beneficial ownership laws organised by the Office of the Registrar of Companies at Peduase Lodge, Aburi, Dr. Asiama said the Corporate Insolvency and Restructuring Act, 2020 (Act 1015) has created a modern framework for helping companies in financial distress.

“A resilient and robust corporate insolvency regime plays a critical role in strengthening Ghana’s corporate regulatory framework.” 

“It ensures compliance, protects the public interest, and promotes fair practices across sectors,” he said. 

He explained that the Act empowers administrators and restructuring officers to develop recovery strategies that can revive businesses rather than liquidate them. According to him, such an approach “not only protects creditors but also saves productive enterprises that drive growth.”

Dr. Asiama also drew attention to common causes of insolvency in the financial and corporate sectors — including creative accounting, insider dealings, weak board oversight, misuse of funds, and poor risk management.

“Weak governance and poor credit standards can turn profitable institutions into insolvent ones overnight,” he cautioned.

He said effective regulation and early intervention are essential to prevent insolvency from spreading across industries, adding that prompt corrective actions and timely restructuring can “restore confidence and sustain employment.”

Dr. Asiama further revealed that ongoing legal reforms are reviewing parts of the financial legislation to strengthen Ghana’s overall stability and corporate governance environment.

“Our goal is to ensure an orderly and credible resolution regime that supports economic growth,” he noted.

The two-day programme, organised by the Registrar of Companies, brought together selected judges to deepen their understanding of corporate insolvency, liquidation, and beneficial ownership laws.