What is the purpose of the Corporate Insolvency and Governance Act?

The Corporate Insolvency and Governance Act (CIGA) is a law in North Carolina that aims to help insolvent companies, also known as businesses in financial distress, to stay afloat. CIGA was created to help struggling businesses stay afloat while attempting to protect creditors and investors. This law is designed to provide businesses in financial distress an extra layer of protection, while allowing them to restructure or reorganize their finances to avoid liquidation. The CIGA also provides guidelines for how corporate insolvencies can be managed. It outlines procedures and processes for the restructuring of finances, debt relief, and other tools that can be used to keep a company operational. This Act also provides the opportunity for businesses to put in force refinancing and capital re-structuring, which can help them reduce their costs and liabilities. The primary purpose of the CIGA is to protect the creditors, investors, and other stakeholders in businesses that are insolvent. The law ensures that creditors will be paid back in full before any other claimants, and it sets up a system for reorganization that allows a company to remain in operation. This law also sets out guidelines for how a company must be managed while restructuring its finances, ensuring that the best interests of investors and creditors are considered. Overall, the Corporate Insolvency and Governance Act allows struggling companies enough breathing room to rearrange their finances and make themselves solvent. This ensures that creditors and investors will receive what they are due and that stakeholders in businesses are protected.

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What is the purpose of the Corporate Insolvency and Governance Act?

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