CEM REPORT | Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo has approved the Insolvency Regulations (IR) 2022.
Mr Rasheed Mahe, Head, Media Unit of Corporate Affairs Commission (CAC), revealed this in a statement on Sunday in Abuja.
Mahe said that the approval is within the powers conferred on the Minister by Section 867 of the Companies and Allied Matters Act (CAMA) 2020.
“The Commission hereby informs the general public that in exercise of the powers conferred by section 867 of the CAMA, 2020, the Honourable Minister of Industry, Trade and Investment, Otunba Richard Adeniyi Adebayo (CON) has approved the Insolvency Regulations (IR) 2022″
According to him, the IR will henceforth regulate insolvency proceedings under CAMA.
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According to the statement, the proceedings include; Company Voluntary Arrangements, Administration of Companies, Receivership/Managership, Winding-up by the Court, and Creditors’ Voluntary Winding-up.
Also, Arrangements and Compromise, Netting, and Dissolution of Incorporated Trustees are also listed.
Furthermore, he said the IR would not apply to rules of the courts relating to insolvency applications made by the Chief Judge of the Federal High Court.
It would also not apply to a court designated by an Act of the National Assembly as being vested with jurisdiction to hear cases arising out of CAMA.
The Commission through the statement further added that the Insolvency Regulations go into effect immediately.
Insolvency is a situation in which an individual, or company cannot pay off bills and debts.
The IRS states that a person is insolvent when the total liabilities exceed total assets.