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Uganda Registration Services Bureau creates Awareness on Insolvency

By Rosette Nandutu,

The Uganda Registration Services Bureau has called for the exploitation of all options to help collapsing firms stand again instead of opting for liquidation and winding in cases of insolvent companies or individuals.

Company/Individual insolvency is a process by which an individual or company is adjudged bankrupt and assets are administered by a trustee in bankruptcy for the benefit of his or her creditors.

URSB made the call during the first regional insolvency conference at Wash and Wills Hotel in Mbale on Thursday 21st April 2022.

This year’s conference is being held under the theme”Emerging Trends in Corporate Restructuring in Uganda: What to expect and how to prepare, aimed at achieving URSB’s contribution towards the National Development Plan Program of developing the private sector through strengthening the Corporate rescue framework.

The training was officially opened by Hon. Justice Godfrey Namundi.

During the opening remarks, Justice Namundi thanked URSB for putting up the awareness training adding that this is to help many businesses in the region sustain their existence.

He also encouraged business proprietors to register their businesses with URSB to avoid consequences involved in cases of insolvency.

Speaking during the conference , Mr. Ntale Mustapher the Director Insolvency and receivership at URSB noted that debt restructuring is one of the best ways of resolving insolvency because it allows continuity of the company.

However, the Registration and Compliance in Insolvency manager, Mr. Kakungulu Allan warned practitioners not to use the insolvency proceedings as debt collection tools but instead advised them to weigh the pros and cons of initiating insolvency proceedings before making the decision.

He also urged participants to register as insolvency practitioners to prepare for the opportunities involved.

Ms. Rachel Niringiye, equipped the participants on how to register as insolvency practitioners, an insight on the business rescue mechanisms and legal approaches available to financially distressed companies and individuals, tips on protection of assets of insolvent debtors.

The Operations Manager Bugisu Cooperative Union, Mr. Wesonga Michael Collins, revealed that BCU had a very wide social and asset base that helped the company to sustain itself especially during the hard times.

He added by encouraging practitioners to use the acquired skills and asset base to do more investments to be able to sustain their companies however, denied to divulge any details concerning BCU’s stand on the recently signed controversial coffee deal between Uganda and Uganda Vinci Coffee Company.

Upon closure, the Director of insolvency and receivership at URSB, Mr. Ntale Mustapher thanked the participants for attending the conference and urged the business community to work with URSB to lift up the business sector in the region.

Uganda Registration Services Bureau is mandated among others to register businesses, marriages, intellectual property, administer insolvent companies and run the security interest in Movable Property Registry System(SIMPO).