Angolan Parliament considers the Legal Regime of Business Recovery and Insolvency

10 February 2020

The draft Law approving the Legal Regime of Business Recovery and Insolvency will have a major impact on attracting private investment to Angola, said the minister of Justice and Human Rights.

Francisco Queiroz, speaking at the end of the 1st extraordinary meeting of the Council of Ministers which analysed the document, said that the proposal, if approved by Parliament, will increase the competitiveness of the Angolan market on an international level.

Without the Law, said the minister of Justice, investors are hesitant to invest in the Angolan market, fearing what will happen to the company, in case of difficulties.

“This problem is overcome,” he stressed, pointing out that the country will be aligned with international practices in this segment when the country’s parliament approves the new law.

The minister also said, according to the Angop news agency, that the draft law covers only private companies.

Queiroz noted the need to recover companies when they are facing difficulties, in order to meet their social function, including ensuring employment, producing wealth and meeting the expectations of shareholders and creditors.

The draft law sets out the essential legal mechanisms for the recovery of debts and for insolvency of companies and individuals in a financially difficult position.

The document, which the National Assembly will receive in the next few days, also lays down the mechanisms for imminent insolvency. (macauhub)