Business Experts Advocate for Efficient Judicial System at Insolvency Conference
Business experts have emphasized the urgent need for an efficient judicial system that prioritizes the prompt execution of cases involving businesses facing financial distress.
This call to action emerged during the 7th annual insolvency conference, where discussions centred on leveraging innovative practices to ensure the sustainability of businesses.
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At the conference, it was revealed that annually, over 50 businesses in Uganda register for insolvency as a result of overwhelming debts.
This alarming statistic underlined the pressing need for effective mechanisms to address financial challenges faced by businesses.
Dr Waiswa Abudu Sallam, Head of Legal at the Uganda Communications Commission, highlighted weaknesses in the legal framework designed to protect businesses from creditors.
Dr Sallam emphasized the importance of revisiting and strengthening existing laws to provide better safeguards for businesses navigating financial difficulties.
Contrary to attributing the decline of businesses solely to financial constraints, the Uganda Registration Service Bureau offered a different perspective.
According to the bureau, improper operational behaviours and the absence of robust business plans also contribute significantly to business failures.
While addressing legal frameworks and judicial efficiency is crucial, there is also a need for comprehensive support mechanisms to enhance business resilience and sustainability.
