Creditor rights under the low and practice of corporate insolvency in Tanzania.

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
University of Dar es Salaam
This wok assesses the question of creditor rights under various forms of insolvency. It examines the current law governing corporate insolvency generally and the various statutes which either directly or indirectly determine the treatment of all types of creditors in insolvency situations. Corporate insolvency in Tanzania entails much more than what is provided for under the companies ordinance. In this regard, this study examines different legal regimes governing corporate insolvency regime and the PSRC insolvency regime. This study investigates three hypotheses. The central hypothesis is that law governing the rights of various types of creditors in corporate insolvencies is outdated, unnecessarily complex and scattered over a wide range of statutes which in some cases are contradictory to each other at worst and ambiguous. The first sub-hypothesis is that there is an alarmingly high level of uncertainty on the treatment of creditors in any particular insolvency, that while some creditors are unduly given preference over others, certain other creditors give up their rights. The second sub-hypothesis is that the existing law and practice is antiquated and inequitable in that it rewards creditors who had the right and power to prevent an insolvency but never took action. The third sub-hypothesis is that there is very little apparent willingness on the part of the government to depart from legal regimes founded on complex and most often misplaced English law concepts. This work is divided into an introductory section and five chapters. The first chapter outlines corporate law in Tanzania. Chapter two highlights various legal regimes, which govern the treatment of creditor rights under the existing law. Critical appraisal of the law and practice of corporate insolvency is made under chapter four. Chapter five concludes the work and gives some recommendations.
Available in print form, East Africana Collection, Dr.Wilbert Chagula Library, (THS EAF KRD M36)
Law and legislation, Creditors right, Debtors right, Tanzania
Mandari, V.B (2001) Creditor rights under the low and practice of corporate insolvency in Tanzania, Masters dissertation, University of Dar es Salaam, Dar es Salaam.