Saving Honest Entrepreneurs through the Second Chance Policy in Ghana

This paper analyses the existing legal frameworks on insolvency in Ghana and how they sufficiently provide to save honest entrepreneurs during financial reforms. Financial sector reforms are a welcomed mechanism to foster financial sector efficiency for sustainable growth. During the period of decision-making in financial sector reforms, it is expected that some business concerns would have their lifespan terminated. Notwithstanding, recent episodes of financial deregulation have revealed unintended consequences of demobilising the sector which has affected innocent entrepreneurs. The aftermath of the financial sector reforms has passed the Corporate Restructuring and Insolvency Act, 2020 (Act 1015). This paper aims to address the issue of whether or not the existing legal framework benchmarked against the Capital Adequacy, Asset quality, Management, Earnings, Liquidity (CAMEL) framework absolves honest entrepreneurs in such a period as against fraudulent entrepreneurs. The paper adopted the doctrinal legal research approach using distinct research tools including data from primary sources, statutes, journal articles, online resources and other obligatory tools. It finds that recent financial sector reforms did not segregate the fraudulent entrepreneur from honest entrepreneurs to make room for the CAMEL to save the latter. It concludes on how a second chance policy can be developed along with existing statutes to settle and save honest businesses in periods of economic volatility.