Problematic of liquidation and dissolution of companies under rwandan law: case study of Rwandatel

II.4.3. Court decision

The court decided and ordered that on 18/07/2011 at 2PM the proceedings of Rwandatel insolvency should be started.^126(*)

It appointed an administrator of Rwandatel Ltd and that he was to be finally admitted by the first meeting of creditors.^127(*)

It gave the administrator the obligations which are stated in article 7 of the Law N. 12/2009 of 26/o5/2009 related to commercial recovery and settling of issues arising from insolvency in its part 9 and that he would do it fulfilling what is stated in article 3 of the said law without considering what is stated in part 3. The court ordered him to fulfill all things that the administrator is obliged by this law.^128(*)

It ordered that the remuneration of the administrator will base on the article 10 of the above said law.

Rwandatel Ltd creditors were requested to inform the administrator the exceptions on the assets that had to be reimbursed and the debt the debts were given.

Rwandatel Ltd debtors were obliged to pay the administrator.

It ordered that the general meeting of all creditors which is provided by the article 22 of the Law N. 12/2009 of 26/05/2009 related to commercial recovery and settling of issues arising from insolvency, in its part 1, were scheduled on 04/08/2011 or any other date of the first week of August 2011, and that the other meeting which is stated in part 2 of that article, was to be scheduled on 31/10/2011.^129(*)

It ordered that the period of registering debts was to end on 31/08/2011. And was the same deadline of informing the administrator their exceptions the creditors had on Rwandatel property and the date that those debts were given.^130(*)

The court ordered that the court decision should be passed in Imvaho nshya and New Times news papers and should be informed the creditors and debtors of Rwandatel Ltd.^131(*)

It ordered that Rwandatel had to pay 27 000RWF of court fees.^132(*)

This judgment of Rwandatel case served as jurisprudence to other future case because RURA and other supervisory body have been given the powers to appoint the temporary administrator of insolvent companies without waiting for the court decision as the court considered that as the proceedings take long, and that meantime the company may face serious matters during the period of court proceedings.

II.4.4. Analysis of the verdict on the judgement of Rwandatel

In the Law N. 7/2009 0f 27/04/2009 relating to companies, there is no provision about the dissolution of Rwandan companies. The only provision on this matter talks about the dissolution of incorporated companies that there will be governed by the article 342 and it also provides only about the liquidation. in its article 352 provides only when and how the company can be removed from the register^133(*) but it doesnot show the procedure of dissolution and as it is silent it should show the law on which the court shall base in deciding on the case about the dissolution of a company. In this case of Rwandatel, the court concluded that Rwandatel must be dissolved and that is based on the Law N.12/2009 of 26/05/2009 relating to commercial recovery and settling of issues arising from insolvency and the court said that it based in its article 17 when it declared the dissolution of Rwandatel, but seeing the article 17, it only provides the grounds of insolvency proceedings^134(*) and the insolvency proceedings are different from dissolution And there is no where appearing the procedure of a company dissolution. This may be considered as gap in Rwandan laws because the legislator should have provided everything concerning the company dissolution. The absence of the provision is like a failure of the Rwandan laws because someone may ask him/herself in which laws the court base in deciding cases concerning company dissolution.

* ¹²⁶Ibid.

* ¹²⁷Ibid.

* ¹²⁸ Nyge C C, 18/07/2011, Rcom 0175/011/TC/Nyge, Registrar General of Companies Vs Rwandatel Ltd, p.4.

* ¹²⁹Idem, p.5

* ¹³⁰Ibid.

* ¹³¹Ibid.

* ¹³²Ibid.

* ¹³³ Law N.7/2009 of 27/04/2999 relating to companies, art.352, OG N.17 bis of 27/04/2009.

* ¹³⁴ Law N. 12/2009 of 26/05/2009 relating to commercial recovery and settling of issues arising from insolvency, art.17. O.G N. special of 26/05/2009.