A Critical Evaluation of the Effectiveness of the Corporate Rescue Procedure in Uganda: A Comparative Analysis

Abstract

This thesis evaluates the effectiveness of the corporate rescue framework in Uganda. This is done by tracing the historical development of insolvency law in Uganda, which was influenced by the English insolvency law. The reforms in Uganda's insolvency law, which introduced corporate rescue regime in Uganda are discussed in this thesis. This thesis further examines the importance of introducing corporate rescue measures in Uganda and assesses the role of these measures in saving companies that ought not to be liquidated. Part VI of the Insolvency Act introduced administration as a rescue procedure while Part V of the Companies Act Cap 106 provides for arrangements and compromises as rescue procedures. This thesis demonstrates that the rescue procedures adopted in Uganda aim to give the company a lifeline and prevent it from sliding further into a complete financial crisis and eventual collapse. It demonstrates that despite the introduction of corporate rescue in the Insolvency Act, companies have continued to be liquidated, and the objective of rescue has not been achieved. Available research shows that there are apparent weaknesses with the current legislative framework, which are highlighted in this thesis and recommendations for law reform are made. Drawing on the corporate rescue frameworks of the United Kingdom, Canada, Singapore, and South Africa, the thesis explores lessons that Uganda can learn from these jurisdictions to improve its corporate rescue regime.