Abstract
The free enterprise economic system is premised upon people being willing to take a risk in establishing businesses by contributing their capital with the anticipation that the risk associated with running a business will attract a return. In any business, the recognition and presence of an element of risk means that a proportion of people who commence a business must fail.
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- 1.
See, eg, Philip R Wood, Principles of International Insolvency (Sweet & Maxwell, 2nd ed, 2007), 891 [29-074] referring to Treaty between Verona and Trent in 1204 regarding transfer of debtors’ assets and to a Treaty between Verona and Venice in 1306 in respect of extradition of fugitive debtors; Kurt H Nadelmann Conflict of Laws: International and Interstate (Martinus Nijhoff, 1972) 302 n15, 303 referring to a treaty between Verona and Trent of 1204 providing for the transfer of assets to the place where the insolvency had occurred and the insolvency convention between Holland and Utrecht in 1679.
- 2.
In this paper, the word ‘State’ has the same meaning as that used in the Model Law on Cross-Border Insolvency issued by UNCITRAL. Cross-border insolvency issues may arise not only between different countries but also between different States in which the country has adopted a federal system.
- 3.
Kurt H Nadelmann, ‘Bankruptcy Treaties ‘(1944) 93 University of Pennsylvania Law Review 58, 58–9; Kurt H Nadelmann Conflict of Laws: International and Interstate (Martinus Nijhoff, 1972) 299–300; Bob Wessels, Bruce A Markell and Jason J Kilborn, International Cooperation in Bankruptcy and Insolvency Matters (Oxford, 2009) 2.
- 4.
Anton Trichardt ‘The Uncitral Model Law on Cross-Border Insolvency’ (2002) 6 Flinders Journal of Law Reform 95 [101–102].
- 5.
For example, in the case of National Employers Mutual General Insurance Association Limited, a company incorporated in England, and recognised as a foreign corporation in three other States: Australia, Canada and South Africa. The writer acted for the Australian liquidators in this liquidation.
- 6.
See Lord Justice Leonard Hoffman, ‘Cross-Border Insolvency: A British Perspective’ (1996) 64 Fordham Law Review, 2507 and reference to Maxwell Communication Corporation administration.
- 7.
See, eg, Schmitt v Deichmann [2012] 2 All ER 1217, 1232–1233 [62–65].
- 8.
Hilton v Guyot (1895) 159 US 113, 163–4.
- 9.
For example see Montevideo Treaty on Commercial International Law Argentina, Bolivia, Columbia, Paraguay, Peru and Uruguay ( entered into force 1889) Articles 35–48; 11 USC §304(2012); Insolvency Act 1986 c 45s 426; Corporations Act 2001 (Cth) ss 580, 581; Bankruptcy Act 1966 (Cth) s 29; Bankruptcy and Insolvency Act, RSC 1985, c B-3 s271. The Bankruptcy Act 1869 32 & 33 Vict c 71 (Eng) required Her Majesty’s Courts to act in aid of each other. Its subsequent incorporation into many of the Commonwealth Colonies’ laws had the effect of British colonial courts recognising and acting in aid of each other. However, each colony’s court was restricted to dealing with the property within its own respective jurisdiction. See Rosalind Mason, ‘Cross-border insolvency: Adoption of CLERP 8 as an evolution of Australian insolvency law’ (2003) 11 Insolvency Law Journal 62, 68–7.
- 10.
See United Nations Commission on International Trade Law, Possible Future Work, Note by Secretariat addendum, Cross Border Insolvency UN DocA/CN.9/378 (23 June 1993).
- 11.
United Nations Commission on International Trade Law, Report on UNCITRAL-INSOL Colloquium on Cross Border Insolvency (Vienna, 17–19 April 1994) UN Doc A/CN.9/398 (19 May 2014) 2 [1].
- 12.
Ibid [15].
- 13.
See United Nations Commission on International Trade Law, Report on UNCITRAL-INSOL Colloquium on Cross Border Insolvency (Toronto, 22–23 March 1995) UN Doc A/CN.9/413 (19 May 2014) 2 [1].
- 14.
See Paul J Omar, The European Insolvency Regulation 2000: A Paradigm of International Cooperation (2003) 15 Bond Law Review 215, 215–7.
- 15.
Miguel Virgos & Etienne Schmidt, Report on the Convention on Insolvency Proceedings [1996] OJ L 6500/96 (3 May 1996) <http://aei.pitt.edu/952/01/insolvency_report_schmidt_1988.pdf>.
- 16.
See Omar, see footnote 25, 218, 232.
- 17.
Regulation EC No 1346/2000 of the European Council on Insolvency Proceedings [2000] OJ L 160/1, preamble 13.
- 18.
Ian Fletcher,’The European Union Regulation on Insolvency Proceedings’ as published in ‘Cross -Border Insolvency A Guide to Recognition and Enforcement’, Insol International (2003).
- 19.
The American Law Institute, Transnational Insolvency: Cooperation Among the NAFTA Countries, Principles of Cooperation Among The NAFA Countries (Jirus Publishing, 2003).
- 20.
Ibid Sec V Recommendation 1.
- 21.
See American Law Institute and International Insolvency Institute, ‘Global Principles for Cooperation in International Insolvency Cases and Global Guidelines for Court to Court Communications in International Insolvency Cases’ (10 January 2012) <http://iiiglobal.org/component/jdownloads/viewdownload/36/5897.html>; Ian F Fletcher and Bob Wessel, ‘Global Principles for Cooperation in International Insolvency Cases (1 January 2013)’ <www.bobwessels.nl/wordpress>.
- 22.
Federal Court of Australia Cross Border insolvency Practice Note: Cooperation with Foreign Courts of Foreign Representatives (GPN-XBDR) (25 October 2016) <http://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/gpn>-xbdrNew South Wales Supreme Court, Practice Court SC Eq 6, Supreme Court Equity Division—Cross-Border Insolvency: Cooperation with Foreign Courts or Foreign Representatives (11 March 2009) <http://www.lawlink.nsw.gov.au/practice_notes/nswsc_pc.nsf/a15f50afb1aa22a9ca2570ed000a2b08/db2a09ee87866a04ca257577007983ae?OpenDocument>; Supreme Court of Victoria, Cross-Border Insolvency Applications and Cooperation with Foreign Courts or Foreign Representatives and Coordination Agreements (30 January 2017), <http://assets.justice.vic.gov.au//supreme/resources/77e1a5a7-3748-4131-a7d4-ddd5cd72b881/cc6crossborderinsolvency.pdf>.
- 23.
Model Law on Cross-Border Insolvency of the United Nations Commission on Trade Law, GA Res 52/158, UN GAOR, 6th Comm, 52nd sess, Agenda Item 148, UN Doc A/RES/52/158 (30 January 1998).
- 24.
United Nations Commission on International Trade Law, Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency, UN Doc A/CN.9/442 (19 December 1997) as approved by GA Res A/RES/52/158 (1997) (30 January 1998) and amended by GA Res A/RES/68/107 (2013) (16 December 2013) [11, 81, 82, 83, 87 88, 141].
- 25.
Ibid [10, 12].
- 26.
Ibid [18].
- 27.
For a history of the introduction of the Model Law see Rosalind Mason ‘Cross-border insolvency: Adoption of CLERP 8 as an evolution of Australian insolvency law’ (2003) 11 Insolvency Law Journal 62, 63–5.
- 28.
United Nations Commission on International Trade Law, Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency, UN Doc A/CN.9/442 (19 December 1997) as approved by GA Res A/RES/52/158 (1997) (30 January 1998) and amended by GA Res A/RES/68/107 (2013) (16 December 2013) [3].
- 29.
Ibid [5].
- 30.
Eg, Cross Border Insolvency Act 2000 (South Africa) s 2.
- 31.
Ian F Fletcher, ‘Insolvency in Private International Law, National and International Approaches’ ( Oxford University Press, 2nd ed, 2005), 453, [8.17].
- 32.
Rosa M Lastra (ed) Cross-Border Bank Insolvency (Oxford University Press, 2011) 189 [8.12].
- 33.
United Nations Commission on International Trade Law, Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency, UN Doc A/CN.9/442 (19 December 1997) as approved by GA Res A/RES/52/158 (1997) (30 January 1998) and amended by GA Res A/RES/68/107 (2013) (16 December 2013) [1].
- 34.
Ibid [2].
- 35.
Ibid [6].
- 36.
United Nations Commission on International Trade Law, Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency, UN Doc A/CN.9/442 (19 December 1997) as approved by GA Res A/RES/52/158 (1997) (30 January 1998) and amended by GA Res A/RES/68/107 (2013) (16 December 2013) [21].
- 37.
See generally, Re HIH Casualty & General Insurance Ltd [2007] 1 All ER 177.
- 38.
Susan Block-Lieb and Terence C Halliday, ‘Incrementalisms in Global Lawmaking’ (2007) 32 Brooklyn Journal of International Law 851, 886.
- 39.
United Nations Commission on International Trade Law, Guide to Enactment of The UNCITRAL Model Law on Cross-Border Insolvency, UN Doc A/CN.9/442 (19 December 1997) as approved by GA Res A/RES/52/158 (1997) (30 January 1998) and amended by GA Res A/RES/68/107 (2013) (16 December 2013) [9].
- 40.
Ibid [20].
- 41.
Ibid.
- 42.
Ibid 188 [19].
- 43.
Clark & Goldstein, see footnote 8, 541.
- 44.
See, eg, Legislative Guide, 41 [13].
- 45.
Ibid 1 [2].
- 46.
United Nations Commission on International Trade Law, UNGOAR, 64th sess, 890th mtg, Supp No 17, UN Doc A/64/17 (1 July 2009), [24].
- 47.
See United Nations Commission on Trade Law, UNCITRAL Practice Guide on Cross-Border Insolvency Cooperation, GA Res 64/112, (16 December 2009) UN Publication Sales No E.10.V.6 (June 2010), [1–3].
- 48.
United Nations Commission on International Trade Law, ‘Legislative Guide on Insolvency Law, Part three: Treatment of enterprise groups in insolvency’ UN Publication Sales No E.12.V.16, GA Res 65/24 (6 December 2010).
- 49.
United Nations Commission on International Trade Law ‘The UNCITRAL Model Law on Cross-Border Insolvency: the judicial perspective’ UN Doc A/CN.9/732 (21 December 2011).
- 50.
Ibid 1.
- 51.
Whilst the Model Law is designed to be enacted into the domestic law of each country, it is not a convention that is adopted by countries and as such there may be variations.
- 52.
United Nations Information Service Press Release UN Commission on International Trade law Concludes 46th Session in Vienna UNIS/L/189 (31 July 2013); United Nations Commission on International Trade Law, Report of Working Group V (Insolvency Law) on the work of its 42nd session (Vienna, 26–30 November 2012) UN Doc A/CN.9/763 (7 December 2012) adopted UN GOAR 68th sess, 68th plen mtg, UN Doc A/RES/68/107 A–B (16 December 2013).
- 53.
See UNCITRAL Model Law on Cross-Border Insolvency, UN Doc A/CN.9/442 (19 December 1997), Preamble.
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Hannan, N. (2017). Development of the Model Law. In: Cross-Border Insolvency. Springer, Singapore. https://doi.org/10.1007/978-981-10-5876-9_2
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