Insolvency: European Commission consults on approach to insolvency (corporate aspects)
Insolvency: European Commission consults on approach to insolvency (corporate aspects)On 5 July 2013, the European Commission published a consultation on a new approach to business failure and insolvency. The consultation follows the Commission's consultation on the future of European insolvency law in March 2012. The Commission highlighted in December 2012 certain areas where differences between domestic laws may hamper the establishment of an efficient insolvency legal framework and the Commission's intention to improve its analysis of the impact arising from differences between national insolvency laws.
The Commission seeks views on whether:
- There are problems with the enforcement of liability claims against directors of insolvent companies within the EU.
- The regulatory gaps in the liability regime have led to any problems in practice. For example, regulatory arbitrage where directors incorporate their company in a member state with a relatively lenient liability regime and move their centre of main interest to a member state with a relatively lenient liability regime in its insolvency law.
- There is a need to take EU action to prevent disqualified directors from heading companies in another member state by ensuring that information on national disqualification orders is available to all relevant authorities or by ensuring that disqualification orders are recognised in all member states.
- The divergence within the EU of the conditions under which a transaction detrimental to the general interest of the creditors can be avoided has caused problems in practice. If so, whether all or some conditions relating to avoidance actions should be harmonised.