European Cross-Border Insolvency Regulation as a Tool Against Forum-Shopping

Abstract

Forum shopping can be defined as the strategic ability offered to companies or individuals to choose freely or through legal loopholes the jurisdiction that will hear the claims of any of the parties

By Issuing EC Regulation 1346/2000, the European Commission aimed at harmonising the field of cross-border insolvency proceedings by ensuring that corporate entities cannot “forum-shop” their way out of legislation.

This Paper will analyse the theoretical framework of the Regulation and its consequences with regards to applicable jurisdiction in the admitted context of the prevention of forum-shopping.

Keywords: Forum shopping, Insolvency Regulation, European Union