Best Restructuring & Insolvency Lawyers in Kampala

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Founded in 2011
10 people in their team
English
Angualia Busiku & Co. Advocates (Registration Number 179893) is a law firm which is comprised of lawyers with previous experience in government service, corporate institutions and law firms. We believe in practicing few areas of law but with several years of experience. This kind of legal...
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Stabit Advocates
Kampala, Uganda

Founded in 2000
173 people in their team
English
Spanish
French
Kinyarwanda
Luganda
Chinese
German
Stabit Advocates LLP (https://www.stabitadvocates.com) is one of the top law firms in the world and stands as a beacon of legal excellence, recognized as one of the top law firms in East Africa, Africa and Globally with over 75 practice areas. Our firm is synonymous with top-tier legal expertise,...
Arnold Ashaba - The Ugandan Lawyer

Arnold Ashaba - The Ugandan Lawyer

15 minutes Free Consultation
Kampala, Uganda

Founded in 2018
10 people in their team
English
Arnold the Ugandan Lawyer focuses on Company law, Trademarks, Business law, Contracts law, intellectual property, Civil law, Family law, Due diligence, investigations, Construction law, Alternative dispute resolution, Foreign investments, Land law, real estate, Oil and gas, Immigration law, NGOs...

Founded in 2015
50 people in their team
Swahili
English
Musangala Advocates & Solicitors founded in 2015Is a well-established, Corporate & Commercial law practice firm duly approved by the Uganda Law Council and located in the heart of the capital city Kampala Uganda.Our legal team is endowed with a wealth of legal experience and expertise. We...

Founded in 1969
60 people in their team
English
Our VisionTo be the “go-to” law firm for our clients’ most important matters in East Africa.Our MissionTo exceed our clients’ expectations by constantly improving our client care and providing timely, affordable and creative solution - oriented advice.⦿ Founded in 1969. We are celebrating...
KTA Advocates
Kampala, Uganda

Founded in 2009
50 people in their team
Swahili
English
KTA Advocates (Karuhanga, Tabaro & Associates) is a specialized law firm focusing on technology, media, telecommunications, Intellectual Property & Construction law. We advise clients on the financing, exploitation and protection of their creative and commercial assets in these...
Nomad Advocates

Nomad Advocates

15 minutes Free Consultation
Kampala, Uganda

Founded in 2023
4 people in their team
English
French
Luganda
Nomad Advocates: Your Strategic Legal Partner in Kampala, UgandaAt Nomad Advocates, we are more than just a law firm; we are your dedicated partners in navigating the complex landscape of corporate and commercial law. Based in the vibrant heart of Kampala, Uganda, our mission is to provide...

Founded in 2004
50 people in their team
English
Who We AreC.R. Amanya Advocates & Solicitors Notaries Public and Commissioner for Oaths, are a leading full service law firm in Uganda. The boutique Ugandan law firm provides exquisite and tailor made legal services and solutions for its individual and corporate both domestic and international...
TARA ADVOCATES
Kampala, Uganda

Founded in 2019
11 people in their team
English
French
Luganda
We are a commercial law firm whose Vision is to ease doing business in Uganda by offering quality legal services. We specialize in Corporate law, Intellectual Property law, Tax, Contract law and Labour law.We are here to assist you in creating, negotiating, protecting and enforcing your legal...

Founded in 2000
50 people in their team
Swahili
English
Who we areMagezi, Ibale & Co. Advocates is a well-established law firm with over 20 years of  professional legal practice. We are approved by the Uganda Law Council to practice law in Uganda. Our legal team has vast practical legal experience and expertise accumulated over many years of...
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About Restructuring & Insolvency Law in Kampala, Uganda

Restructuring and insolvency law in Kampala, Uganda governs the processes businesses and individuals follow when they are unable to pay their debts. These legal frameworks provide mechanisms for reorganizing troubled businesses, facilitating the orderly exit of insolvent companies, and protecting the rights of creditors while also considering the interests of debtors. With Kampala being the commercial hub of Uganda, many entities and individuals sometimes face financial hardships requiring either structured resuscitation or, in severe cases, orderly liquidation. The goal of restructuring is to help viable businesses adjust their finances or operations to regain profitability, while insolvency procedures focus on fairly distributing assets among creditors if a business cannot recover.

Why You May Need a Lawyer

Facing financial distress can be overwhelming and legally complex. Engaging an experienced restructuring and insolvency lawyer in Kampala can be crucial in the following situations:

  • Your business is struggling to meet its debt obligations or is facing creditor pressure.
  • You are a creditor seeking to recover dues from an individual or business showing signs of insolvency.
  • You are unsure about your options or rights in situations of debt restructuring, receivership, or liquidation.
  • You wish to negotiate new terms with lenders or other stakeholders while limiting legal risk.
  • You need guidance on voluntary arrangements, administration, or bankruptcy proceedings.
  • You are interested in buying assets from distressed businesses.
  • You require advice on directors' duties and risks in times of financial uncertainty.
  • You are facing litigation related to debts, guarantees, or insolvency claims.

A lawyer can provide tailored advice, represent you in court, assist in negotiations, and ensure compliance with Uganda's regulations.

Local Laws Overview

Restructuring and insolvency in Kampala are mainly governed by the Insolvency Act, 2011 and its amendments, alongside subsidiary regulations like the Insolvency Regulations, 2013. Key aspects include:

  • Corporate Insolvency: Procedures for winding up (liquidation), receivership, and administration are provided. These set out how the distressed company's assets are managed, preserved, or sold, and how creditors are paid.
  • Personal Insolvency: Individual bankruptcy is managed under the Insolvency Act, allowing for debt relief and asset distribution in a fair manner.
  • Debt Restructuring: Options such as company voluntary arrangements and schemes of arrangement allow parties to agree on new terms, subject to court approval in certain cases.
  • Creditors' Rights: The law prescribes how creditors can give notice, claim outstanding amounts, and object to arrangements or liquidations.
  • Directors' Duties: Company directors owe fiduciary duties and must avoid transactions that unfairly prejudice creditors when insolvency looms.
  • Cross-Border Insolvency: Provisions exist for international cooperation where assets or stakeholders span multiple countries.
  • Regulatory Authorities: The Official Receiver under the Uganda Registration Services Bureau (URSB) oversees official insolvency proceedings.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring refers to the process of reorganizing a company’s finances or operations to restore stability and profitability, while insolvency is the state where a person or business cannot pay its debts as they fall due and may need to be wound up or reorganized under the law.

Who can initiate insolvency proceedings in Uganda?

Both creditors and debtors can initiate insolvency proceedings. A debtor may voluntarily declare insolvency, or creditors can apply to court to commence insolvency if debts remain unpaid.

What are the main types of insolvency procedures in Kampala?

The main procedures are liquidation (winding up), receivership, administration, and bankruptcy for individuals. Each serves different purposes based on the financial state and goals of the business or individual.

What happens to employees during company insolvency?

Employees’ contracts may be terminated or continued under new arrangements. Wages and terminal benefits are usually recognized as preferential debts, giving employees a priority claim during asset distribution.

How are creditors paid in insolvency?

Assets are distributed according to statutory priority, with secured creditors and preferential debts (such as employee wages) paid first, followed by unsecured creditors and then shareholders if any surplus remains.

Can an insolvent individual or company continue operating?

Depending on the restructuring plan approved by creditors and the court, operations can continue under supervision while the business implements changes or settles debts.

What options are there for out-of-court settlement of debts?

Informal settlements, negotiated payment plans, or formal schemes of arrangement can be agreed between debtors and creditors, sometimes avoiding the need for court proceedings.

Are directors personally liable for company debts?

Generally, directors are not personally liable unless they have given personal guarantees or engaged in wrongful or fraudulent trading. They must, however, act responsibly and in creditors' best interests when insolvency is imminent.

What role does the Official Receiver play?

The Official Receiver, typically a regulator under the Uganda Registration Services Bureau, supervises the process, manages asset collection and distribution, and oversees compliance with the law.

How can I challenge an insolvency order or liquidation?

Interested parties may object or appeal through the courts, especially if they believe the procedure is unjustified or was conducted improperly. Legal representation can help ensure your rights are protected throughout the process.

Additional Resources

If you require more information, consider consulting the following bodies and resources:

  • Uganda Registration Services Bureau (URSB) - Official government agency for business and insolvency processes
  • Uganda Law Society - Can assist with finding qualified insolvency lawyers
  • Commercial Court Division, High Court of Uganda - Handles insolvency disputes and applications
  • Published guides from commercial banks and business associations in Kampala regarding debt management and restructuring
  • Legal aid clinics and non-profit organizations offering free or subsidized legal advice on insolvency

Next Steps

If you or your business is facing financial distress in Kampala, Uganda, consider taking the following steps:

  • Assess your financial situation and gather relevant documents about your debts and assets.
  • Consult with a qualified restructuring and insolvency lawyer for a professional evaluation of your options.
  • Discuss available legal procedures, negotiate with creditors, and explore restructuring options before insolvency escalates.
  • If necessary, prepare to initiate formal insolvency proceedings under the guidance of your legal representative.
  • Stay proactive and informed throughout the process to maximize protection of your interests and rights.

Early legal intervention can often prevent more severe consequences and provide the best chance for recovery or an orderly resolution.

Lawzana helps you find the best lawyers and law firms in Kampala through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Kampala, Uganda - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.