Does the UK need Chapter 11?
- Document type
- Barker, Roger
- Institute of Directors
- Date of publication
- 1 June 2009
- Trends: economic, social and technology trends affecting business
- Business and management
- Material type
A report describes the current British regime for corporate insolvency, and suggests that the UK should introduce a process similar to the USA's “Chapter 11” regime where a company's existing management are supported to rescue it from insolvency. Statistics for corporate insolvencies and their outcomes in the UK are included. It is argued that differences between the UK and USA responses to corporate insolvency are the result of social attitudes, with UK opinion holding that insolvencies are the result of failure on the part of company directors and executives for which they should face negative consequences, and USA opinion considering them to be an inevitable risk of business.
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