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.

The objectives of corporate insolvency law: lessons for Uganda

2018 ◽  
Vol 60 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Chrispas Nyombi
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Law Reform ◽  
Insolvency Law ◽  
Content Type ◽  
Law System ◽  
Insolvency Regulation ◽  
Corporate Insolvency

Purpose This paper aims to provide guidance to law reformers in Uganda on the best approach to insolvency law reform and the objectives that should be furthered. Design/methodology/approach This paper provides a literature review. Findings A balance of various objectives serves the purpose of a modern insolvency law system. Originality/value These findings would enable future reforms in Uganda to be streamlined towards a particular objective rather than a general approach to insolvency regulation.

scholarly journals The bankruptcy law of Saudi Arabia: policy, operation and comparison

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fahad Alarifi
Keyword(s):  
Saudi Arabia ◽  
Design Methodology ◽  
Comprehensive Assessment ◽  
Bankruptcy Law ◽  
Content Type ◽  
Policy Goals ◽  
Alternative Approach ◽  
The Us ◽  
The Law ◽  
Bankruptcy Code

Purpose The purpose of the paper is to analyze the new Bankruptcy Law in Saudi Arabia (KSA Bankruptcy Law) under both a comparative lens and a policy-oriented one, while highlighting some of the most essential operational steps and procedures in a bankruptcy proceeding under the law. Design/methodology/approach The approach adopted analyzes the specific mechanics and procedures of a bankruptcy law under the general policies and goals of bankruptcy. Additionally, where appropriate, a brief comparison to the US Bankruptcy code and its provisions is presented to provide an alternative approach on how similar issues are handled under a reputable and proven bankruptcy system. Findings Overall, the KSA Bankruptcy Law is a major accomplishment and advancement to the Kingdom’s insolvency regime. The law consolidated and codified the laws governing bankruptcy under the Kingdom’s prior regime, and followed the structure of a modern bankruptcy regime. In doing so, several of the law’s policies and objectives have been fulfilled by providing an effective, predictable and reliable bankruptcy system. Originality/value Given the relatively recent adoption of the KSA Bankruptcy Law, the paper provides a comprehensive assessment of the law’s operation and its effectiveness in achieving its policy goals as a modern bankruptcy law.

Research on the optimal equity of duo-ou enterprise based on data analysis

2020 ◽  
Vol 33 (6) ◽  
pp. 1201-1221
Author(s):  
TianLong Ma ◽  
Huiping Zhang
Keyword(s):  
Design Methodology ◽  
Policy Implications ◽  
Policy Recommendations ◽  
Corporate Ownership ◽  
Wage Level ◽  
Specific Level ◽  
Content Type ◽  
Employee Stock Ownership ◽  
Research Findings ◽  
Ownership Reform

PurposeThis study aims to disclose how the nature of corporate ownership, stock efficiency and wage level affect the optimal proportion of employee stock.Design/methodology/approachThis paper studies three duopoly markets: two private enterprises, two state-owned enterprises (SOEs) and a private enterprise and an SOE. The competitions between the two parties are taken as a two-stage dynamic sequential game and studied through back-induction.FindingsThe results reveal that the enterprise ownership has a directly bearing on the optimal proportion of employee stock and determines whether to implement the employee stock ownership plan (ESOP) and the specific level of the plan. The optimal proportion of employee stock is positively correlated with its contribution to enterprise efficiency. There are many influencing factors on the effect of wage level on the optimal proportion of employee stock, namely, the ownership nature of ESOP implementer and efficiency difference of different nature stocks.Social implicationsThe results of this study provide policy recommendations for companies preparing to implement ESOP.Originality/valueThe research findings provide policy implications for enterprises to prepare a suitable ESOP and the reform of national equities, especially the mixed-ownership reform in China.

Greening retail: an Indian experience

2014 ◽  
Vol 42 (7) ◽  
pp. 613-625 ◽  
Author(s):  
Prashant Kumar
Keyword(s):  
Design Methodology ◽  
Consumer Involvement ◽  
Green Marketing ◽  
Business Practices ◽  
Value Addition ◽  
Green Products ◽  
Sustainable Business ◽  
Content Type ◽  
Indian Context ◽  
Indian Experience

Purpose – The purpose of this paper is to determine the extent of greening retail taking place in Indian context and identifies its core groups of green retail practices. Design/methodology/approach – A questionnaire was developed and used to collect data from retailers of green products, and caselets were developed. Findings – Nine core groups of green retail practices are identified – distinctness of green products, promoting sustainable business practices, use of environmental keywords, promotion for awareness, promotional offers for sale, ensuring availability and visibility of green products, approval for environmental claims, environmentally friendly appeal of store and consumer involvement approaches. Research limitations/implications – Findings of the study should be generalised with its limitations; though are useful in understanding greening retail concept. Originality/value – This paper is original in terms of its value addition to the green marketing literature and extends the concept of sustainability to retailing.

CCP resolution, loss allocation and shareholders’ rights

2019 ◽  
Vol 27 (2) ◽  
pp. 141-159
Author(s):  
Marc Peters
Keyword(s):  
Design Methodology ◽  
Early Stage ◽  
Financial Resources ◽  
Allocation Mechanism ◽  
Insolvency Law ◽  
Content Type ◽  
Loss Allocation ◽  
Contractual Arrangements ◽  
Resolution Principle ◽  
Practical Implications

Purpose Central clearing counterparties’ (CCPs) specific loss allocation mechanism is reflected in the specific resolution regime designed at the international level. At the same time, international guidance texts require equity to bear losses first in resolution. This creates a tension that immediately exposes resolution authorities to potential claims from CCPs’ shareholders. The purpose of this paper is to seek possible options to solve that tension, thereby enabling a workable and credible resolution regime for CCPs. Design/methodology/approach The paper analyses the current tension between the no creditor worse-off (NCWO) counterfactual for CCPs and the “equity bears first losses in resolution” principle. It then considers six different options to solve this tension, ranging from a revision of insolvency law to the modification of the loss-allocation structure. Findings The paper concludes that additional layers of capital contribution, adapting the contractual arrangements or articles of incorporation and/or the creation of a specific NCWO counterfactual for shareholders could help in solving the identified tension. Practical implications The paper presents options on how to design a workable and credible resolution regime for CCPs that would enable resolution authorities to exercise their powers and have the flexibility to intervene at an early stage in recovery to prevent the exhaustion of available financial resources, without being unduly exposed to claims. Originality/value The paper contributes to the literature on CCP resolution. It is one of the first to analyse the articulation between the loss-allocation structure of CCPs, the NCWO principle and shareholders’ rights. We hope that this paper will encourage further literature to develop on this important subject.

UNCAC aided information sharing (cooperation): an Indian experience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ajay Kumar
Keyword(s):  
Developing Countries ◽  
Civil Society ◽  
United Nations ◽  
Information Sharing ◽  
Design Methodology ◽  
Law And Economics ◽  
Content Type ◽  
Indian Experience ◽  
State Practice ◽  
United Nations Convention

Purpose This paper aims to investigate the obstacles to the sharing of information, as envisaged in the United Nations Convention against Corruption (UNCAC), and therefore, its accessibility to developing countries. The findings of this paper could help States to limit corruption in interstate interactions and civil society groups calling for measures that can help assess potential corruption. Design/methodology/approach This research is based on qualitative analysis – usual normative analysis was undertaken in law and economics. For this purpose, an analysis of the literature on cooperation generated by the UNCAC and State practice within defence deals was undertaken. Findings It is found that States where defence manufacturers reside can prevent information sharing and thereby hinder investigations against corruption. It is found that defence importing States can overcome the limitations of the UNCAC, to enforce information sharing, by including guarantees into their contracts. Originality/value As research on information sharing practices of States are scarce or non-existent, this paper contributes to the literature on this aspect of cooperation envisaged in the UNCAC. Further, this paper elaborates on what States could do to limit non-cooperation in the sharing of information.

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.

scholarly journals The efficiency of the Italian preventive agreement: a legal, economic and organizational perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Angelo Paletta ◽  
Genc Alimehmeti
Keyword(s):  
Ownership Structure ◽  
Design Methodology ◽  
Original Data ◽  
Bankruptcy Law ◽  
Debt Structure ◽  
Content Type ◽  
Ex Post ◽  
Organizational Perspective ◽  
Ex Ante ◽  
Virtuous Behavior

Purpose This paper aims to analyze the ex ante and ex post economic efficiency of the preventive agreement (concordato preventivo) or composition with creditors as defined by the Italian Bankruptcy Law. This study examines four possible outcomes of the procedure: homologation (confirmation); the degree of dissent/consent of creditors; the revocation, admissibility or inadmissibility; the declaration of the company bankruptcy in preventive agreement. Design/methodology/approach This paper uses data from 728 Italian companies which filed for preventive agreement in 2016. In reference to each of the four possible outcomes, this study applies nine logit regressions to analyze the effects of a series of efficiency variables ex ante (corporate-based drivers) and ex post (procedure-based drivers). Findings Results show the relevance of the debt structure, ownership structure and virtuous behavior, corporate governance and management systems, as well as effectivity of the court control on the preventive agreement outcome. Originality/value This paper draws on original data of bankruptcy in Italy and gives empirical evidence of the ex ante and ex post factors on the outcomes of the preventive agreement.

scholarly journals The interpretative approach to bankruptcy law

2018 ◽  
Vol 60 (3) ◽  
pp. 824-841
Author(s):  
Hamiisi Junior Nsubuga
Keyword(s):  
Theoretical Approach ◽  
Design Methodology ◽  
Business Owners ◽  
Employment Protection ◽  
Bankruptcy Law ◽  
Content Type ◽  
Theoretical Perspectives ◽  
Policy Objectives ◽  
Interpretative Approach ◽  
Corporate Rescue

Purpose This paper aims to highlight how an interpretative approach to law as posited by Dworkin may be used to remedy the tension between employment protection and corporate rescue laws. Design/methodology/approach This paper adopts a doctrinal and theoretical approach to law. Findings The tension between corporate rescue and employment protection laws affects both employees’ and business owners’ policy objectives on corporate insolvency. The theoretical perspectives of both the traditionalists and proceduralists have so far failed to provide a clear approach on how this tension may be balanced or remedied. This paper proposes that this tension may be remedied through interpretation, that is, by adopting Dworkin’s Interpretative Approach to Law. Originality/value Most researchers and academics have written extensively about the tension between corporate rescue and employment protection, but this paper is the first of its kind to propose a remedy to this tension through interpretation.

Rethinking insolvency law amid the COVID-19 pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
James Routledge
Keyword(s):  
Financial Distress ◽  
Design Methodology ◽  
Economic Recovery ◽  
Insolvency Law ◽  
Content Type ◽  
Theoretical Perspectives ◽  
The Future ◽  
Is Value

Purpose Amid the COVID-19 pandemic, it is important to consider the effectiveness of insolvency law given the increase in companies facing financial distress. Current insolvency law was not designed in the context of the unprecedented challenges of the pandemic. Therefore, it may not provide the framework needed to assist the rehabilitation of distressed companies that is important to economic recovery. The purpose of this paper is to briefly discuss the rethinking of insolvency law policy with a view to maximising opportunities for rescue and rehabilitation. Design/methodology/approach The commentary offers suggestions on how insolvency law can maximise opportunities for rehabilitation. The approach is to consider competing theoretical perspectives on the objective of insolvency law and provide commentary on rethinking key insolvency law provisions to better meet the needs of distressed businesses in the unprecedented circumstances of the pandemic and into the future. Findings This paper concludes that in the context of the pandemic insolvency policy that is value-based and debtor-friendly is needed to promote rehabilitation. Insolvency law should refocus on debtors and rehabilitation rather than being excessively focussed on the interest of creditors. Originality/value This paper offers a unique and timely commentary on the capacity of insolvency law to respond to the unforeseen COVD-19 pandemic.

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