DISSECTING THE ANATOMY OF PROCEDURE FOR COMPANY IN ADMINISTRATION   UNDER CAMA, 2020: A VERITABLE BUSINESS RESCUE OPTION.

Company Administration is a process whereby an Insolvency Practitioner is appointed as Administrator to restructure a business, with the aim of either turning it into a profitable company or effecting a sale of the business to preserve value and employment. The main objective of a business entering administration is to rescue it through restructuring to help it return to profitability and ultimately, to avoid insolvency.  Therefore, business rescue is a procedure aimed at facilitating the rehabilitation of a financially distressed company. In other words, or put differently, business rescue is the process of saving a company from insolvency.  Where a company is in administration, the company is placed under a temporary supervision of a business rescue practitioner who manages the affairs of the distressed company(1) In recent years, the escalation of company and business failures with its dire consequences on the socio-economic well-being of the country has necessitated the need for corporate rescue mechanisms in the Companies and Allied Matters Act(2)  and other legislations, since Nigeria does not have a separate and distinct insolvency legislation. Read More