12 December 2012

Liberia: Bankruptcy Law in Liberia Soon

A consultative dialogue on solvency and bankruptcy law has gotten under way in Monrovia.

The law, drafted by the Law Reform Commission, when passed into law by the national legislature, would be first of its kind in Liberia.

Amongst others things, the solvency and bankruptcy law is seeking to enhance and enforce the successful enactment of Liberia's first modern Commercial Code and a law to create a commercial Court as a speedy resolution of commercial disputes.

Speaking to this paper Friday, the chairman of the Law Reform Commission, Cllr. Jallah A. Barbu described the establishment of the commercial court in Liberia as a crucial first step in the process of achieving business environment reforms that will ensure greater security for commercial transactions, including substantial improvement and expansion of access to finance, improvement of the investment climate, as well as inspiring greater confidence in Liberia as an investment destination.

"In accordance with its mandate of review and reform of flawed, outdated, inconsistent and underdeveloped laws, the Law Reform Commission is connecting the process of reviewing the legal framework for insolvency and bankruptcy in Liberia" Cllr. Barbu said.

He further indicated that the new initiative is in furtherance of stakeholders' work carried out in 2010 by various groups to develop the Commercial Code, including the raising of expectation that he said the new law would deliver to Liberia's business environment reforms that will ensure greater security for commercial transactions, and substantially improve access to finance.

"As there are many groups of stakeholders in a solvency system, this workshop is intended to bring together a cross section of such stakeholders and seek their input at the beginning of the process" Cllr. Barbu explained.

The bankruptcy law if legislated by the National Legislature, the LRC boss noted, would be the first of its kind in the country.

He averred further that the stakeholders' consultation is the first step towards formulating a document that would be drafted for review, and followed by more consultations and amendments before a final draft is submitted to the National Legislature for its onward passage into law.

Friday's event also assembled several personalities, and, representatives of various stakeholders, including Liberia Chamber of Commerce, the Liberia Bankers' Association, Accounting institutions, creditors, and the Judiciary branch of Government, amongst others.

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