Corporate Insolvency and the Protection of Creditors

Mohammad Rizal Salim

The University of Nottingham Malaysia campus

August 27, 2009

UiTM Law Review, Vol. 3, p. 143, 2007

The primary purpose for the doctrine of separate legal personality is to encourage entrepreneurship, by shifting the risks of business failure away from entrepreneurs to creditors and other risk bearers. Unfortunately this doctrine is subject to abuse by corporate controllers, which prompted the courts and the legislature to provide for exceptions. These exceptions are better known as the lifting or piercing of the corporate veil. How do these exceptions protect creditors? How effective are they? This article seeks to examine laws in relation to the separate legal personality doctrine and the duties of directors which directly affects, or attempts to protect, creditors from unfair and improper conduct by corporate controllers. This is Part II of II.

Number of Pages in PDF File: 24

Keywords: Corporate insolvency, corporate governance, Malaysia

JEL Classification: K00, K20, K40

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Date posted: August 31, 2009  

Suggested Citation

Salim, Mohammad Rizal, Corporate Insolvency and the Protection of Creditors (August 27, 2009). UiTM Law Review, Vol. 3, p. 143, 2007. Available at SSRN: http://ssrn.com/abstract=1462902

Contact Information

Mohammad Rizal Salim (Contact Author)
The University of Nottingham Malaysia campus ( email )
Nottingham University Business School
Jalan Broga
43500 Semenyih, Selangor 43500
HOME PAGE: http://www.nottingham.edu.my
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