Paul Baffoe-Bonnie urges judiciary to prioritize business rescue

Chief Justice Paul Baffoe-Bonnie has called on the judiciary and insolvency practitioners to treat the liquidation of distressed businesses as a last resort, emphasizing the need to rescue viable firms to safeguard the economy. Speaking at an induction ceremony for the Chartered Institute of Restructuring and Insolvency Practitioners (CIRIP) Ghana, the Chief Justice stressed that the primary objective should be the rehabilitation of companies facing financial challenges rather than their immediate dissolution. He noted that saving such entities is critical for protecting jobs and preserving capital investments.

The Chief Justice highlighted the Corporate Insolvency and Restructuring Act, 2020, as a transformative legal framework that shifts the focus from liquidation to the potential recovery of distressed firms. He urged practitioners to use sound judgment and maintain high integrity when assessing the viability of businesses. According to Justice Baffoe-Bonnie, the legal system must support a regime where businesses with recovery potential are given the necessary room to survive, as the broader economic implications of company failures are often devastating for families and the national treasury.

The ceremony also marked the 20th anniversary of CIRIP Ghana, reflecting on the institute's efforts to professionalize the insolvency field in the country. Felix Addo, President of CIRIP Ghana, reiterated the institute's commitment to continuous professional development to ensure that practitioners are equipped with the skills required to navigate complex corporate distress. The call by the Chief Justice signals a reinforced judicial commitment to industrial stability, encouraging a culture where financial distress is managed through restructuring rather than total closure.