The UNCITRAL Model Law on Cross-Border Insolvency Comes of Age: New Times or New Paradigms?
Date Written: October 1, 2019
In 2018, the Model Law on Cross-Border Insolvency celebrated its 21st birthday. The Model
Law has been something of a success internationally. Based on the Model Law provisions, many major common law jurisdictions, including the United Kingdom (UK), the United States (US), Canada, and Australia, have changed their domestic laws on cross-border insolvency cooperation, and so too have Japan and Korea. However, the emerging global super powers of China and India, and most of the European Union (EU) member states including the economic power houses of France and Germany-have remained resistant.
Nevertheless, the number of international acceptances is growing slowly, most recently including Singapore. The Government of India recently issued a draft chapter to be included in the Insolvency and Bankruptcy Code 2016 and is also in the process of considering whether to subscribe to the Model Law. This paper critically assesses the basic paradigm of cross-border insolvency cooperation as reflected in the Model Law, the Model Law as a potential vehicle for harmonization, and the Model Law's limits while facilitating such cross-border cooperation.
Keywords: UNCITRAL Model Law; Cross-border insolvency; Singapore
JEL Classification: K22
Suggested Citation: Suggested Citation