Is there a case for United States Chapter 11 Bankruptcy protection legislation in Zambia?
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Date
2013-05-03
Authors
Libakeni, Mwimanenwa Mark
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Abstract
Since the early 1990s, following the change from a single party democratic system to a multi-party system, Zambia has adopted a liberalised economy which is driven by the forces of demand and supply rather than state control. A free market system is based on competition and risk and consequently both the debtor and creditor need adequate protection at the point of insolvency. This study examined to what extent the current Zambian law protects the debtor and what gaps exist, particularly when compared to International standards of Insolvency Law related to debtor protection. The study shows that in fact the current Zambian Insolvency law does not meet international standards in respect of protecting a financially troubled but viable company from liquidation. It is proposed that the Law be revised in this key area to provide for a reorganisation of viable companies and that such legislation should be modelled after United States Bankruptcy code Chapter 11 styled insolvency legislation.
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Bankruptcy-Zambia , Business Failures-law and legislation