AN EXAMINATION OF COMPANY RESCUE THROUGH COMPANY VOLUNTARY ARRANGEMENT UNDER THE COMPANIES AND ALLIED MATTERS ACT 2020
), Emmanuel Oluwafemi Olowononi(2), Asma’u Sulaiman Muhammad(3), Precious A. N. Ahiarammunnah(4),
(1) Nigerian Law School, Kano Campus, Bagauda, Kano State
(2) Nigerian Law School, Abuja Headquarters.
(3) Nigerian Law School, Kano Campus, Bagauda, Kano State
(4) Nigerian Law School, Kano Campus, Bagauda, Kano State
Corresponding Author
Abstract
The Companies and Allied Matters Act 2020 (CAMA 2020) introduced the Company Voluntary Arrangement (CVA) as a formal tool for corporate restructuring in Nigeria. This reform marks a shift from liquidation-focused insolvency practices toward a more structured rescue approach. This article provides a doctrinal analysis of CVA under sections 434-442 CAMA 2020. It explores the theoretical basis of statutory compromise, examines the procedural framework of CVA, and highlights structural weaknesses, such as the lack of a statutory voting threshold and no standalone moratorium. By comparing developments under the UK Insolvency Act 1986 and subsequent reforms, the article concludes that while CVA aligns with modern creditor collectivism theory, its long-term success depends on purposeful judicial interpretation and legislative improvements.
Keywords: Company Voluntary Arrangement, CAMA 2020, Corporate Rescue, Insolvency Reform, Moratorium, Secured Creditors.
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