The Resolution of Insolvency in Cameroon

In a world driven by credit, a speedy resolution of insolvency will build predictability and commercial confidence among credit providers, resulting in increased credit and reduced borrowing costs, facilitating the resuscitation of viable businesses, thereby maximizing the going concern value and preserving jobs, and also benefit entrepreneurs and lower the rate of liquidation of distressed firms. With this, the chapter employs one argument that Cameroon has not registered a success in the resolution of insolvency. The purpose of this chapter, therefore, is to highlight and discuss the reasons behind the poor performance of the country in resolving insolvency. The value of this chapter lies in the contribution it makes in the understanding of the OHADA legal framework on insolvency and improvement of the country's performance in the Doing Business ranking on insolvency.

An Introduction to Corporate Insolvency Law and Reforms in Australia

The Corporations Act of 2001 regulated the probable insolvency proceedings of all companies incorporated in Australia and companies incorporated or possessing separate legal. For personal insolvency, a specific legislation called Bankruptcy Act is there, but the basic framework of corporate insolvency law has been there since the inception of Corporations Act 2001 enactment, which includes all the aspects of company formation, management, governance, and dissolution. The authors have highlighted recent reforms; however, the main concentration of this chapter is on the legal infrastructure of corporate insolvency law at present as the reforms are not yet in force. The chapter also puts forth the problems faced by corporate debtor and creditors in the proceedings of insolvency resolution and has also expressed the scenario of cross-border insolvency in Australia in light of UNICTRAL Model law of cross-border insolvency which has been adopted by the Australian government in 2008.

Corporate Insolvency Law in India

The 2008 financial crisis was followed by a global economic downturn, a credit crunch, and a reduction in cross-border lending, trade finance, and foreign direct investment, which adversely affected businesses around the world. The consequent increase in the number of firm insolvencies in the corporate sector highlights the need for commercial bankruptcy laws to liquidate efficiently unviable firms and reorganize viable ones, so as to maximize the total value of proceeds received by creditors, shareholders, employees, and other stakeholders. India's weak insolvency regime, its significant inefficiencies, and systematic abuse are some of the reasons for the distressed state of credit markets in India today. The Code promises to bring about far-reaching reforms with a thrust on creditor driven insolvency resolution. It aims at early identification of financial failure and maximizing the asset value of insolvent firms. The Code also has provisions to address cross-border insolvency through bilateral agreements and reciprocal arrangements with other countries.

Corporate Insolvency Law in South Asia

The chapter, while making a background study of the principles underlying corporate insolvency laws and corporate insolvency laws prevalent in non-Asian economies (i.e., United States, United Kingdom, Australia, and South Africa), tracks the history of corporate insolvency law in select South-Asian and South-East Asian countries (i.e., Bangladesh, Bhutan, India, Malaysia, Nepal, Pakistan, Sri Lanka, and Thailand). The chapter seeks to acquaint the readers with the efforts which led to the various reforms in these jurisdictions.

Cross-Border Insolvency Law in BRIC

The effective cross-border insolvency regimes are absent in many emerging economies around the world, and the BRIC nations are not the exception to this fact. Nevertheless, law on cross-border insolvency, which establishes the international standard in this area, is not addressed by domestic laws of these nations. This has led to a glaring gap in international insolvency regime. Where there is the absence of any uniform and stable law, however, the UNCITRAL model law on cross-border insolvency establishes the international standard that could be followed by any country. The chapter addressed the insolvency law regime in BRIC nations and has made an attempt to analyze the cross-border insolvency regulations in said countries in light of UNICITRAL model law on cross-border insolvency.

The New Law of Corporate Restructuring in Malaysia

The passing of the Malaysian Companies Bill 2015, which replaced the Companies Act 1965, marks the most comprehensive legislative change in Malaysia's corporate law in 50 years. The Companies Act 2016 makes some significant changes to Malaysia's corporate insolvency regime, as it introduces two new insolvency processes: judicial management and corporate voluntary administration. It also modifies the existing law relating to schemes of arrangement. The objective of this chapter is to study and evaluate the legislative position in United Kingdom, Australia, and Malaysia with regard to the scheme of creditors' arrangement. The introduction of the judicial management mechanisms is a move towards bringing Malaysia's insolvency laws up to the same international standards as many other countries in the region. It also discusses on the strength and limitation of the mechanism as opposed to the concept of judicial management.

Does Corporate Governance Prevent Corporate Debacles?

The renowned agency theory and thus most of the corporate governance (CG) regulations stress upon the independence of corporate boards and its various committees such as nomination and audit, among others. However, the review of the specific previous empirical literature does not fully support this public myth by unveiling that independence-related CG practices such as separate leadership structure, the majority of independent directors on the board, and independence of the nomination and audit committees could not escape the demise of Enron, WorldCom, and Global Crossing in the USA. Also, these CG practices could not avoid the fiasco of the Linear Corporation, Kenmark, and Sime Darby in Malaysia at the dawn of the twenty-first century. The review infers that despite a pivotal role, it is not only the independence of the board and its committees that avoid corporate failures. Overall, this review has important insights for governments, regulators, policymakers, corporate boards, stock exchanges, and shareholders of both the developed and developing countries around the world.

Corporate Insolvency Laws in Singapore

Corporate rescue mechanism in Singapore is based on colonial structure, wherein the companies in distress can go for informal workouts or judicial management and schemes of arrangement under Companies Act. Singapore has just amended the Company Act and incorporated the provisions relating to insolvency and bankruptcy. The chapter reviews the use of schemes of arrangement and judicial management in Singapore as a corporate rescue mechanism and address the reform legislation of 2017 for corporate insolvency.

An International Perspective of the Changes Proposed to the Debt Recovery Laws of India

This chapter relates to the recent changes made to certain debt recovery laws enforced in India and the current parallel legal regime relating to debtor protection in U.S. and U.K. As per the statement of objects and reasons, these amendments are being proposed to facilitate the speedy disposal of cases by the debt recovery tribunals. This chapter analyzes the relevant international legal regime in place in U.S. and U.K. to suggest changes to the current Indian regime relating to debtor's rights, so as to better balance the interests of the debtors with the interests of the creditor. The authors request the Indian legislature to draw guidance and inspiration from the current regime of legal rights as available to the debtors in U.S. and U.K. and pass laws for preventing banks and financial institutions from exploiting debtors further.

Corporate Insolvency Law and Reforms in South Africa

Every country has provided business recuse system and a regime for the protection of insolvent debtors. South Africa has had this legal infrastructure since 1926 when the statutory procedure of judicial management was introduced by the Companies Act 1926. The chapter discusses the judicial management, mechanisms to secure unpaid debts, carrying on business during insolvency, and the new corporate rescue procedures applicable for South African companies as provided in Companies Act 2008. The chapter also puts a light on corporate insolvency informs in South Africa.