Liman, Yusuf Usman and Mohamed Yusoff, Zuryati and Abdul Rahman, Rohana (2022) Peculiarities of Small Companies Versus Insolvency Liability Framework in Nigeria. In: Proceedings: Seminar on Law and Society 2022 (SOLAS VI), Theme: "Sustainability In Society: Legal Response", 8 & 9 November 2022, UUM Sintok, Kedah.

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Abstract

Small company directors in Nigeria are subjected to the same insolvency liability framework as medium and large company directors. Studies have shown around the world that regular insolvency law is not in tune with the needs of SM Es, which form the bulk of small companies in Nigeria. In response, countries adopt different insolvency resolution frameworks for their SMEs. International organizations such as UNCITRAL, IMF and Asian Development Bank have formulated insolvency law legislative guides for SM Es to guide countries. Based on this background, the paper using the provisions of Nigeria Companies and Allied Matters Act 2020 and secondary sources, examined the peculiarities faced by small company directors in a state of financial distress. Due to the distinctiveness of small companies in Nigeria, the directors continue to face daunting challenges that shape their actions in insolvency. The paper argued that Nigeria needs to adopt a unique insolvency liability pathway for small company directors to alleviate the cost, speed and the dilemma of displacing the owner-director during insolvency processes in the liability framework. Adopting the SMEs insolvencies framework will lead to fairness and efficiency of enforcement actions against erring small company directors in Nigeria, which is one of the aims that in solvency law seeks to achieve.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	insolvency liability, Small company director, peculiarities, SMEs
Subjects:	H Social Sciences > HF Commerce
Divisions:	School of Law
Depositing User:	Mrs Nurin Jazlina Hamid
Date Deposited:	25 Feb 2024 11:16
Last Modified:	25 Feb 2024 11:16
URI:	https://repo.uum.edu.my/id/eprint/30451

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