The Door to Reorganisation : Strategic Behaviour or Abuse of Voluntary Administration ?  

Oleh:

Eow, Intan

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Melbourne University Law Review vol. 30 no. 2 (Aug. 2006), page 300-337.
Topik: STRATEGIC; reorganisation; abuse; voluntary; administration

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: MM70 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Not all companies should be allowed to reorganise under voluntary administration ; reorganisations change individual rights drastically. Currently, eligible companies must be insolvent or likely to become insolvent. Recent proposals to reform this insolvency requirement do not ensure that reorganisation creates the highest economic value from the company’s resources. Policymakers must understand this underlying policy and its trade - offs to prevent ‘abuses’ but permit ‘strategic behaviour’ consistent with desirable policy. Alternatives like the United States ‘Chapter 11 good faith test’ and the little - known ‘voluntary administration good faith test’ are too uncertain. Instead, this article advocates for directors to value the business upfront before they conclude that reorganisation extracts the most value from the company’s resources. This proposed additional ‘value maximising test’ would remedy the inadequacy of the current eligibility requirement.

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