Comparative Corporate Insolvency Law

2016 ◽  
Author(s):  
Horst Eidenmüller
Keyword(s):  
Economic Efficiency ◽  
Financial Distress ◽  
Agency Problems ◽  
Functional Approach ◽  
Bankruptcy Law ◽  
Insolvency Proceeding ◽  
Insolvency Law ◽  
The Us ◽  
Corporate Insolvency ◽  
Secured Creditors

This chapter deals with fundamental issues of corporate insolvency (bankruptcy) law. Particular attention is paid to the agency problems related to “insolvency (bankruptcy) governance” of corporations and how these problems are addressed in various jurisdictions. Methodologically, the chapter is based on a functional approach that compares different legal regimes against the yardstick of economic efficiency. The structure of the chapter follows the issues as they arise in time in a corporate insolvency proceeding: objectives of insolvency laws, opening and governance of proceedings, ranking of claims and the position of secured creditors and shareholders, and rescue proceedings. The chapter also covers the contractual resolution of financial distress. It concludes with thoughts on the reasons for the identified jurisdictional divergences and an outlook on the worldwide efforts toward harmonization of (corporate) insolvency laws. In terms of jurisdictions, the chapter mainly draws on the corporate insolvency laws in the US, England, France, and Germany.

19 National Report for the United States

2016 ◽  
Author(s):  
Kilborn Jason
Keyword(s):  
United States ◽  
The United States ◽  
Bankruptcy Law ◽  
The Us ◽  
Bankruptcy Procedure ◽  
Bankruptcy Code ◽  
Insolvency Proceedings ◽  
Special Priority ◽  
Academic Debate ◽  
Secured Creditors

This chapter discusses the law on creditor claims in the United States. There is nothing particularly remarkable about the way in which the US Bankruptcy Code and Federal Rules of Bankruptcy Procedure deal with the treatment of various claims. The academic debate about the super-priority of secured claims with regard to the collateral securing those claims has more or less subsided, as legislators have remained unmoved by any argument to reduce or constrain the rights of secured creditors beyond the existing constraints of bankruptcy law. Legislators have also resisted efforts to decrease the number of claims afforded special priority over general unsecured claims. The remainder of the chapter deals with insolvency claims, administration claims, and non-enforceable claims in turn. Each part presents: the definition and scope of the claim; rules for submission, verification, and satisfaction or admission of claims; ranking of claims; and voting and other participation rights in insolvency proceedings.

Insolvency and Bankruptcy Code 2016: revisiting with market reality

2020 ◽  
Vol 63 (1) ◽  
pp. 125-146
Author(s):  
Shakti Deb ◽  
Indrajit Dube
Keyword(s):  
Design Methodology ◽  
Bankruptcy Law ◽  
Corporate Ownership ◽  
Insolvency Law ◽  
Content Type ◽  
Indian Experience ◽  
Theoretical Wisdom ◽  
Corporate Insolvency ◽  
Bankruptcy Code ◽  
Ownership Composition

Purpose This paper aims to revisit the Indian experience on corporate bankruptcy law to answer “why Indian corporate insolvency law structured differently from a manager-driven (pre-Insolvency Code) to manager-displacing model (post-Insolvency Code)?” Design/methodology/approach This paper is qualitative in nature. The paper analyses the prevailing theoretical wisdom in corporate insolvency law in India and examines the practices of Indian bankruptcy regime. Findings The authors argued, considering the corporate ownership composition, the Insolvency and Bankruptcy Code 2016 will not accomplish the intended objective (i.e. the “creditor primacy”). The findings refute with the evolutionary theory, i.e. debt and equity both will tend towards dispersion in outsider system of governance. Originality/value This paper put forward the imprint that Indian corporate insolvency regime is manager-displacing under Law on Books and manager-driven under Law on Practice.

Economics of Bankruptcy

2017 ◽  
pp. 446-480
Author(s):  
Michelle J. White
Keyword(s):  
Small Business ◽  
Economic Efficiency ◽  
Financial Distress ◽  
Economic Effects ◽  
Bankruptcy Law ◽  
Corporate Bankruptcy ◽  
Common Features ◽  
Before And After ◽  
The Law

This chapter presents a review bankruptcy law. It examines whether and when the law encourages debtors and creditors to behave economically efficient ways, both before and after they are in financial distress. It also considers how bankruptcy law could be changed to improve economic efficiency. The discussion abstracts from individual countries’ bankruptcy laws in order to focus on common features of bankruptcy. However, because much of the literature on economic effects of bankruptcy law is US-based, the discussion often focuses on US bankruptcy law in particular. The chapter first examines corporate bankruptcy and then turns to personal and small business bankruptcy.

scholarly journals Corporate Insolvency Proceedings: A Case of Visegrad Four

2016 ◽  
Vol 64 (1) ◽  
pp. 235-243 ◽  
Author(s):  
Zuzana Crhová ◽  
Zuzana Fišerová ◽  
Marie Paseková
Keyword(s):  
Economic Development ◽  
Financial Crisis ◽  
Point Of View ◽  
Insolvency Proceeding ◽  
Insolvency Law ◽  
Economic Slowdown ◽  
Corporate Insolvency ◽  
Insolvency Proceedings ◽  
Legal Entities

Insolvency proceeding and liquidation of bankrupt companies are important topics in days of economic slowdown which affected all economies after financial crisis. This paper aims to find main differences between insolvency proceedings in the countries of Visegrad four. The main goal is to describe insolvency law in member countries and then to compare it from the poin of view of main actors. This comparison can help to find which changes and ideas could be applied to improve and make more effective the Czech insolvency system. The countries of Visegrad four was selected because of their common history and similar economic development. First of all, the legal background of insolvency proceedings which is possible for legal entities in these countries is examined. Then this paper deals with insolvency proceedings from the point of view of their participants – creditors, debtors and insolvency administrator. We have found that insolvency proceedings in these countries are very similar but there is still some inspiration for the Czech insolvency system.

Trends and Developments in Chinese Insolvency Law: The First Decade of the PRC Enterprise Bankruptcy Law

2018 ◽  
Vol 66 (3) ◽  
pp. 669-711 ◽  
Author(s):  
Stacey Steele ◽  
Andrew Godwin ◽  
Jin Chun ◽  
Han Changyin ◽  
Ren Yimin ◽  
...  
Keyword(s):  
Bankruptcy Law ◽  
Insolvency Law

The United States

2017 ◽  
pp. 109-136
Keyword(s):  
United States ◽  
Economic Efficiency ◽  
United States Of America ◽  
The United States ◽  
Potential Measurement ◽  
Energy Equivalent ◽  
Unit Energy ◽  
The Us ◽  
Gross State Product ◽  
Positive Score

This chapter applies the ? model to the United States of America. By assuming that the US is a ‘world-system,' we can measure the economic efficiency of each state (and the District of Columbia). The model predicts an output floor based on the inputs of land and people as per-unit energy-equivalents. This expected output is then compared to the actual Gross State Product (GSP) as a per-unit energy-equivalent. States that are economically efficient register a positive residual, and hence a positive ? score. However, given potential measurement inaccuracies, states with low negative scores are also added to this efficient tier.

Sources of English Corporate Insolvency Law

2017 ◽  
Author(s):  
Hamish Anderson
Keyword(s):  
Civil Law ◽  
Insolvency Law ◽  
General Body ◽  
Corporate Insolvency ◽  
Different Sources

Reference is quite frequently made to the ‘insolvency code’ but this is misleading; there is no codification of English insolvency law which would bear comparison with a civil law code. The term is used colloquially to refer to the general body of insolvency law, covering both personal and corporate insolvency, which derives from a number of different sources. The term is also sometimes used more specifically to refer to the rules dealing with the ranking and priority of creditors.

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