Company Controller's Role as One Way to Rescue Companies under Jordanian's Insolvency Act 2018 "Comparative Study"

The main objective of this article is to shed light on the new emergence on the Jordanian insolvency Act no. 21 of 2018, after it became independent from the commercial law, specifically the role of the companies general controller through the application of the provisions of this law to rescue company as much as possible from stopping running its business activates and then its insolvency. In this article, the Jordanian law was compared with English law in order to compel Jordanian legislator to benefit from other legislation, given that the Jordanian law is still recent. This article dealt with the issue of corporate rescue and the role of the company controller in starting company insolvency procedures, in accordance with the provisions of the Jordanian Insolvency Act 2018; with refer to the provisions of the UNCITRAL Insolvency Legislative Guide 2004. This article concluded that Jordanian legislator must develop a rescue culture by putting in place protection for insolvent companies, such as a moratorium and expanding the means of rescue, rather than limiting the rescue culture to the reorganization plan that is adopted by the UNCITRAL Legislative Guide of Insolvency 2004. In addition, Jordanian legislators must make some legal amendments that are in line with recommendations made by legal authorities within the framework of the company controller role in the Jordanian Insolvency Act 2018.

25. Company insolvency proceedings

This chapter deals with the procedures available when a company is insolvent or facing financial difficulties. It also considers the ways in which insolvent partnerships can be subject to the same procedures as companies. The law relating to these matters is principally contained in the Insolvency Act 1986 together with the Insolvency Rules 1986, as amended by the Insolvency Act 2000 and the Enterprise Act 2002. The insolvency legislation provides four procedures for companies in financial difficulties: administration, voluntary arrangement, receivership, and liquidation.

1 Jurisdiction, Sources and General Rules

The chapter discusses the process of applying for and making winding-up orders. Proceedings for Winding Up by the Court Under Insolvency Act 1986 must be made by Petition. Winding up is most often sought by creditors of insolvent companies and is usually seen primarily as an insolvency procedure. Other purposes may justify making a winding-up order. From the time that a court makes an order that a company is to be wound up, the company has a liquidator under IA 1986. The liquidator must take into his custody or under his control all the property and things in action to which the company is or appears to be entitled. A compulsory winding up is wholly dependent on the court. It is for the court to oversee the realization of the assets of the company and their distribution, on the correct principles, among creditors and members. Legislation has made available various company insolvency procedures which, though not winding-up orders or bank or building society insolvency orders, replace a company’s directors with an independent insolvency office-holder who is at least capable of achieving the winding up of the company.

20. Company insolvency and liquidation

This chapter deals with procedures and legislation governing the insolvency and liquidation of a company and who are qualified as insolvency practitioners. It discusses insolvency procedures such as administration, voluntary arrangement, creditors’ voluntary winding up, winding up by the court and the appointment of a provisional liquidator. It considers the effect of insolvency and liquidation procedures on floating charges, court control of insolvency and liquidation procedures, and liability for fraudulent trading and wrongful trading. The legal principles underlying disqualification orders against a company’s directors, the use of an insolvent company’s name, the order of the application of assets in liquidation and the dissolution of a company are also examined.

Interaction between institutional technologies, wage guarantee schemes and corporate social responsibility in respect of the protection of workers’ benefits in case of company insolvency

The objective of this paper is the investigation of relationship and interaction between the companies’ insolvency and modern law regulations, social security systems based primarily on wage guarantee schemes and corporate social responsibility (CSR) practice. Evidence shows that despite the significant impact of the company’s insolvency on the personal and civic fate of the workers, the economic and social output still depends on legal regulations. Thus, differences between bankruptcy or restructuring laws in common and civil law countries in terms of their protection of various debtors’ claims have been analysed. The legal origin is not the only contributing factor to the social well-being and safety of people in case of insolvency. In spite the fact, that, as it was shown by J. Boter et al., consistently with the legal theory, patterns of regulation across countries are shaped largely by their legal structures, which were transplantated to most countries, effective implementation of their nationally developed and wellregulated guarantee schemes helps to eliminate the economic consequences of insolvency. Some examples of such regulations as the second element of the guarantee of workers’ benefits in case of company insolvency were also examined in the article. The assertion of the state of the art of disclosing social responsibility aspects of companies’ insolvency as a case of CSR and the search of answers to the question if the protection of pension and wage benefits in case of corporate insolvency is considered as one of the components of CSR was the third aspect discovered in the article. This aspect may be the basis for further study and practical implementation of disclosure requirements in non-financial reports and combined financial statements.

INSOLVENCY OF INSURANCE COMPANIES IN UKRAINE: DETECTION AND PROGNOSTICATION

The paper demonstrates the results of research on the problems of insurance company insolvency. The outcomes describe the basic principles of detection and using the early warning system in Ukraine. The paper shows the necessity to reorganize the basic principles of the detection of local insolvent insurers. The study also determines the groups of persons who are directly or indirectly interested in the insurer's solvency assessment. This work presents the system of insurance companies' insolvency indicators, which help to identify insolvency at the early stages. The paper distinguishes precautionary, delayed, internal, and external insolvency indicators of insurers. The study divides the values of insurer's insolvency indicators into "yellow" and "red" zones to increase the flexibility of using various instruments for influencing by the regulator depending on the level of danger of the insurance company. This work argues for taking timely measures to the threat of insolvency of the insurance companies by the insurance supervisor.Key words: insolvency, instability of the insurers, solvency, early warning system, insurance market.

25. Company insolvency proceedings

This chapter deals with the procedures available when a company is insolvent or facing financial difficulties. It also considers the ways in which insolvent partnerships can be subject to the same procedures as companies. The law relating to these matters is principally contained in the Insolvency Act 1986 together with the Insolvency Rules 1986, as amended by the Insolvency Act 2000 and the Enterprise Act 2002. The insolvency legislation provides four procedures for companies in financial difficulties: administration, voluntary arrangement, receivership, and liquidation.

20. Company insolvency and liquidation

This chapter deals with procedures and legislation governing the insolvency and liquidation of a company and who are qualified as insolvency practitioners. It discusses insolvency procedures such as administration, voluntary arrangement, creditors’ voluntary winding up, winding up by the court and the appointment of a provisional liquidator. It considers the effect of insolvency and liquidation procedures on floating charges, court control of insolvency and liquidation procedures, and liability for fraudulent trading and wrongful trading. The legal principles underlying disqualification orders against a company’s directors, the use of an insolvent company’s name, the order of the application of assets in liquidation and the dissolution of a company are also examined.

25. Company insolvency proceedings

This chapter deals with the procedures available when a company is insolvent or facing financial difficulties. It also considers the ways in which insolvent partnerships can be subject to the same procedures as companies. The law relating to these matters is principally contained in the Insolvency Act 1986 (IA 1986) together with the Insolvency Rules 1986, as amended by the Insolvency Act 2000 and the Enterprise Act 2002. The insolvency legislation provides four procedures for companies in financial difficulties: administration, voluntary arrangement, receivership, and liquidation.