Reforming the Governance of Corporate Rescue: The Enterprise Act 2002

ESRC Centre for Business Research Working Paper No. 288

60 Pages Posted: 25 Jul 2004  

John Armour

University of Oxford - Faculty of Law; University of Oxford - Said Business School; European Corporate Governance Institute (ECGI)

Riz Mokal

South Square Chambers; University College London (UCL) - Faculty of Laws

Date Written: 2004

Abstract

English corporate insolvency law has been reshaped by the Enterprise Act 2002. The Act was intended to 'to facilitate company rescue and to produce better returns for creditors as a whole'. Administrative receivership, which placed control of insolvency proceedings in the hands of banks, is for most purposes being abolished. It is being replaced by a 'streamlined' administration procedure. Whilst it will still be possible for banks to control the appointment process, the administrator once in office owes duties to all creditors and must act in accordance with a statutory hierarchy of objectives. In this article, we seek to describe, and to evaluate, this new world of corporate rescue.

Keywords: Corporate insolvency, corporate rescue, secured credit

JEL Classification: G33, G38, K22

Suggested Citation

Armour, John and Mokal, Riz, Reforming the Governance of Corporate Rescue: The Enterprise Act 2002 (2004). ESRC Centre for Business Research Working Paper No. 288. Available at SSRN: https://ssrn.com/abstract=567306 or http://dx.doi.org/10.2139/ssrn.567306

John Armour (Contact Author)

University of Oxford - Faculty of Law ( email )

Oriel College
Oxford, OX1 4EW
United Kingdom
+44 1865 286544 (Phone)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Riz Mokal

University College London (UCL) - Faculty of Laws ( email )

Gower St
London WC1E OEG, WC1E 6BT
United Kingdom
+44 - (0)20 - 7679 1406 (Phone)
+44 - (0)20 - 7679 1461 (Fax)

HOME PAGE: http://www.ucl.ac.uk/laws/

South Square Chambers ( email )

3/4 South Square
Gray's Inn
London, WC1R 5HP
United Kingdom

HOME PAGE: http://www.southsquare.com/Riz_Mokal

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