ESSENCE OF RECEIVERSHIP UNDER GHANAIAN LAW

In today’s Friday read we will be discussing the essence of receivership under Ghanaian law.
Under Ghanaian law, Receivership is a legal procedure where a licensed insolvency practitioner, appointed by the Registrar of Companies as a Receiver, is authorized to take over the management and control of a company’s assets and affairs to discharge the properties in order to protect the interest of the creditors or any person claiming an interest in the property of a company undergoing liquidation. This is usually done when a company is unable to meet its debt obligations or is in financial distress.
It is important to note that the essence of receivership is to provide a means for creditors to recover their debts without having to go through lengthy court proceedings. It is an important tool for creditors to exercise their rights and enforce their claims against a debtor company.