Literature Review On Cross Border Insolvency

1613 Words7 Pages
F. LITERATURE REVIEW BOOKS 1. PRASAD G. GODBOLE, MERGERS, ACQUISITIONS AND CORPORATE RESTRUCTURING 81 (1st ed. 2009). The process of corporate restructuring is applicable in the cases of cross border insolvency. Though there is inadequacy of substantive laws with regard to restructuring in the instances of cross border insolvency, there is a provision in the Companies Act, 2013 providing a good base to cross border merger and amalgamations. Section 234 of Companies Act, 2013 mentions that the scheme of mergers and amalgamation can be applied between a company incorporated in India and a company incorporated outside India in the jurisdictions permissible by the Central Government. Thus, when there is a situation, when the Indian company has…show more content…
Basically three methods of dealing with corporate insolvency and financial crisis are commonly recognized. There can be a privately agreed reorganization between the company or its banks and creditors or with any other company to pay off the debts of the defaulting company called as work-out and referred to as corporate reconstruction in India or there can be a judicial reorganization which involves a judicial order imposing stays or freezes on creditor executions or a reorganization plan or a final liquidation initiated by court order imposing stays on creditor executions and other freezes and involving a disposal of the company’s assets, the distribution of the proceeds to the creditors and the dissolution of the company. Both work-outs and judicial reorganizations are intended to rescue the company and the creditors whereas a final liquidation guillotines the…show more content…
The insolvency and corporate restructuring in India is governed by the provisions of the Companies Act, 1956; the Sick Industrial Companies (Special Provisions) Act, 1985; the Recovery of Debts due to Banks and Financial Institutions Act, 1993 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Cross-border insolvency law in India is inadequate as India has not adopted the UNCITRAL Model Law and even the EC Regulations does not apply to it. The Companies Act, 2013 applies on the insolvency proceedings where the assets and creditors are situated outside India. Foreign entities can approach the Indian Courts for recovering the dues from the Indian

    More about Literature Review On Cross Border Insolvency

      Open Document