A Case To Ammend The Insolvency Act To Give Employees Terminal Priority
Monday, October 31, 2016
But what the liquidation of BCL has also exposed, is the position of Botswana workers in the ranking order of creditors. According to the Insolvency Act, when a company undergoes liquidation, there are creditors who are given preference as compared to others. We have since learnt that the ranking order of creditors are divided into two categories, secured creditors and preferent creditors. Secured creditors are those that are given in simple parlance first priority in the payment of debts. These are holders of mortgage bonds hypothecating immovable property.
This means if banks have any mortgage bonds against BCL and TNCM, they will be paid first in any remaining estate because they are secured creditors.
These legal professionals, who are entrusted with upholding the rule of law, face numerous challenges that compromise their ability to effectively carry out their duties.Elsewhere in this edition, we carry a story on the lamentations of the officers of court.The prosecutors have raised a number of concerns, calling for urgent attention from all relevant stakeholders, including the President, Minister of Justice and the Attorney General. Their...