TABLE OF CONTENTS
DECLARATION ................................................................................................ i
APPROVAL BY SUPERVISOR .......................................................................... ii
DEDICATION .................................................................................................. iii
ACKNOWLEDGEMENT ................................................................................... iv
TABLE OF CONTENTS ................................................................... , ................. v
LIST OF STATUTES ........................................................................................ xi
LIST OF CASES ............................................................................................. xii
ABSTRACT .................................................................................................... XV
CHAPTER ONE ......................................................................................... 1
GENERAL INTRODUCTION ....................................................................... 1
1. 1 Background of the study ....................................................... , ................ 1
1.2 Statement of the problem ....................................................................... 4
1.3 Research question .................................................................................. 5
1.4 Objectives of the study ........................................................................... 5
1.4.1 General objective ................................................................................. 5
1.4.2 Specific objectives ............................................................................... 5
1.5 Scope of study ....................................................................................... 6
1.5.1 Geographical scope ............................................................ : ................ 6
1.5.2 Field scope .......................................................................................... 6
v
1.6 Significance of the study ........................................................................ 6
1. 7 Research Methodology ........................................................................... 6
1.8 Literature Review ................................................................................... 7
1. 9 Chapterisation ....................................................................................... 9
CHAPTER TWO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
THE LAWS AND THE RELEVANT PRINCIPLES GOVERNING INSOLVENCYlO
2.1. Introduction ........................................................................................ 10
2.2. The Insolvency Act of 2011 and the Insolvency Regulations Of 2013 .... 11
2.3. Regulation of Jurisdiction of Insolvency Matters .................................. 11
2.4. Regulation of insolvency practitioners in Uganda ................................ 12
2.5. Commencement of Insolvency proceedings .......................................... 13
2.6. Statutory Demand as a legal requirement for Instituting Insolvency
proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.6.1. Circumstances in which a Statutory Demand can be given, Form and
Content of a Statutory Demand ................................................... : .............. 16
2.6.2. Service of a statutory demand; ......................................................... 17
2.7. Application of Equity And common Law in Insolvency ...... : .................. 18
2.8. The administrative machinery of corporate Insolvency ......................... 19
2.8.1 The Ministry of Justice and Constitutional Affairs ............................. 19
2.8. 2 The Courts ....................................................................................... 19
2.8.3 The Office of the Official Receiver ..................................................... 20
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CHAPTER THREE ...... ................................... ~ ........................... ............. 23
INDIVIDUAL INSOLVENCY, ITS CONSEQUENCES AND CROSSCUTING
ISSUES IN THE OTHER LEGISLATIONS .................................................. 23
3.1. Introduction .. ......................... ......... .............. .... ....................... ........... 23
3 .2. Meaning and presentation of the different forms of Individual Insolvency
................................ ............ ..... ...... ............ ..................... ....................... ... 23
3.2.1. Meaning and presentation of a debtors petition for bankruptcy .. ...... 23
3.2.2. Meaning and presentation of a creditors petition for bankruptcy ..... . 24
3.3. Options Available to a Person In Respect Of Which a Bankruptcy Petition
is brought ........ ............ ............................................... ............................... 27
3.4 Arrangement order and its effect .. .. ....................................... : .............. 30
3.5. Advan tage of an arr angement order as opposed to a petition for
bankruptcy . ...... ..... ............. ....... ........ ....... ... .. ... ... .. .. ....... ....... .. ...... ....... ... .. 31
3 .6 . Consequences of Bankruptcy ..... ..... .................. ............................ ...... 3 1
3.6.1. To th e person of the debtor ...... ..... .. ........... ..... .. .... .. ......................... 31
3.6.2 Offences likely to be committed by a debtor jwho is adjudged bankrupt.
···························································· ················ ··································· 32
3.6.3. The property of the bankrupt ........ ..................... .. ..... ...... ... ... ........... 33
3 .6.4. Creditors .............. .. .... .. .... ... ..... ...... ... .. .. .... .. ..... ... .... ... ...... ................ 34
3.6.5 . The transactions made by th e Insolvent individual .... .. ...... .... ...... ..... 35
3.7. Cross Cutting Issues of Bankruptcy as in Other Legislations ............... 36
3. 7. 1 The 1995 constitu tion of the Republic of Uganda .............................. 36
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3.7.2 The Advocates Act of 2010 ................................................................ 36
3.7.3 Companies Act of 2012 ..................................................................... 37
3.7.4 Contracts Act of2010 ....................................................................... 37
3. 7.5 Partnership Act of 2010 .................................................................... 38
3.7.6 The National Social Security Fund Act Cap 222 ................................. 38
3.7.7 The Registration of the Titles Act Cap 230 ......................................... 38
CHAPTER FOUR .................................................................................... 40
LIQUIDATION/WINDING UP OF COMPANIES, ITS CONSEQUENCES AND
THE CROSS CUTTING ISSUES IN OTHER LEGISLATIONS ....................... 40
4.1. Introduction ........................................................................................ 40
4.2. Modes of Liquidation ........................................................................... 40
4.2.1. Voluntary Liquidation of a Company ................................................ 41
4.2.1.1. By the Directors ............................................................................ 41
4.2.1.2. By the Members of the Company ................................................... 42
4.2.1.3. By the Creditors ............................................................................ 42
4.2.2. Procedure of the creditors meeting for voluntary liquidation ............. 43
4.2.3. Procedure for Voluntary Winding up of the Company ....................... 43
4.2.4. Compulsory Liquidation ................................................................... 45
4.2.4.1 Procedure of compulsory liquidation ............................................... 46
4.3. Consequences of Liquidation ............................................................... 48
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4. 3. 1. General effect of Liquidation ............................................................. 49
4.3.2. Consequences faced by company directors, ...................................... 49
4 .3.3 Consequences on the share holders .................................................. 51
4.3.4 Consequences towards new and old contracts of the company ........... 51
4.3.5. Consequences faced by the business of the Company ....................... 52
4.4. Cross Cutting Issues of Winding up / Liquidation in Other Legislations.
··················································································································54.4.1 The Financial institutions' Act of 2004 No.2 as amended b'y Act No.2 of
2016 .......................................................................................................... 53
4.4.2 The Cooperative Societies Act, Chapter 112, Laws of Uganda ............. 53
4.4.3 The Public Enterprises Reform and Divestiture Act, Chapter 98, Laws of
Uganda ...................................................................................................... 54
4.4.4 The Micro Finance Deposit Taking Institutions Act No.5 of 2003 ...... 54
4.4.5 The Tier 4 Microfinance Institutions and Money Lenders Act No. 18 of
2016 .......................................................................................................... 54
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FINDINGS, RECOMMENDATIONS AND CONCLUSSIONS .......................... 56
5.1 Findings .............................................................................................. 56
5.1.1 The law of Insolvency in Uganda is wanting in a few areas ................. 56
5.1.2 Insolvency is seen as a means as of enhancing growth ...................... 56
5.1.3 Insolvency is looked at as a solution to inability to pay debts ............. 57
ABSTRACT The study is sought to an examination of the legal implication of individual and corporate insolvency in Uganda an analysis of the law and practice in Uganda. With the main purpose to examine the effects of insolvency and its cross cutting issues in the other legislations; and the specific objectives to (a) To identify the effects of insolvency on Companies, (b) To identify the effect of insolvency on individuals, (c) To identify legislations and their provisions relating to insolvency and what effects do they have on either an individual or on the company declared bankrupt or insolvent, (d) To examine the consequences of both Bankruptcy and winding up of individuals and companies respectively, To examine the procedures necessary for bankruptcy proceedings. The financial challenges today face both individuals and companies and when a person cannot pay his debts as and when they fall due, this is what is referred to as insolvency. Insolvency Law provides mechanisms for both the reorganization of a debtor and the distribution of his/her assets for collective satisfaction of the creditors' claims. The legal regime in Uganda is enriched with a lot of guidance on how Insolvency proceedings can be instituted from the beginning to the end. This research discusses the Law regulating Insolvency practice in Uganda, the implications/Consequences of insolvency, and some relevant principles necessary for instituting Insolvency proceedings. It goes in detail to discuss the two major divisions of insolvency known as bankruptcy and winding up for both Individuals and companies respectively. The major areas of weakness and improvements needed for this branch of Law are fully discussed to give the reader deeper knowledge in this branch of the law both for practice and research.
JUDITH, B (2022). An Examination of the Legal Implication of Individual and Corporate Insolvency in Uganda: An Analysis of the Law and Practice in Uganda.. Afribary. Retrieved from https://afribary.com/works/an-examination-of-the-legal-implication-of-individual-and-corporate-insolvency-in-uganda-an-analysis-of-the-law-and-practice-in-uganda
JUDITH, BABIRYE "An Examination of the Legal Implication of Individual and Corporate Insolvency in Uganda: An Analysis of the Law and Practice in Uganda." Afribary. Afribary, 08 Aug. 2022, https://afribary.com/works/an-examination-of-the-legal-implication-of-individual-and-corporate-insolvency-in-uganda-an-analysis-of-the-law-and-practice-in-uganda. Accessed 23 Nov. 2024.
JUDITH, BABIRYE . "An Examination of the Legal Implication of Individual and Corporate Insolvency in Uganda: An Analysis of the Law and Practice in Uganda.". Afribary, Afribary, 08 Aug. 2022. Web. 23 Nov. 2024. < https://afribary.com/works/an-examination-of-the-legal-implication-of-individual-and-corporate-insolvency-in-uganda-an-analysis-of-the-law-and-practice-in-uganda >.
JUDITH, BABIRYE . "An Examination of the Legal Implication of Individual and Corporate Insolvency in Uganda: An Analysis of the Law and Practice in Uganda." Afribary (2022). Accessed November 23, 2024. https://afribary.com/works/an-examination-of-the-legal-implication-of-individual-and-corporate-insolvency-in-uganda-an-analysis-of-the-law-and-practice-in-uganda