On 22 November the Commission finally published its long-awaited proposal on business insolvency, as foreseen by the Capital Markets Union initiative. The proposal presents a set of European rules on business insolvency aimed at promoting early restructuring to promote growth and protect jobs.
The proposed directive focuses on three key elements: (1) common principles on the use of early restructuring frameworks, which will help companies continue their activity and preserve jobs; (2) rules to allow entrepreneurs to benefit from a second chance, as they will be fully discharged of their debt after a maximum period of three years: currently, half of Europeans say they would not start a business because of fear of failure; and (3) targeted measures for member states to increase the efficiency of insolvency, restructuring and discharge procedures, reducing the excessive length and costs of procedures in many member states, which result in legal uncertainty for creditors and investors and low recovery rates of unpaid debts.
The initiative seeks to increase the opportunities for companies in financial difficulties to restructure early on to prevent bankruptcy and avoid laying off staff. It also aims to ensure entrepreneurs get a second chance at doing business after a bankruptcy. Together, this should lead to more effective and efficient insolvency procedures throughout the EU.
The proposal will now be allocated to a European Parliament committee. Separately, a Council working party will begin working on the dossier. The UK Law Societies will be closely monitoring the ongoing developments and reporting on them as they progress.
In this issue
- Private prosecution: the Glasgow Rape Case revisited
- The commercialisation of space
- Feminism: all is not what it seems…
- Retaking the narrative on complaints
- Reading for pleasure
- Opinion: Alan McIntosh
- Book reviews
- President's column
- RoS riding to the four (hundred)
- People on the move
- Scot in the European hot seat
- When partners fall short
- Uber: a great gig?
- Brexit: the end of cross-border practice?
- Closing in: the gender pay gap rules
- Simple procedure – it's complicated
- When changing the defender is OK
- Solemn procedure: beware the changes
- Divorce and the new state pension
- Delivery of alcohol: a “game changer”?
- A tale of two "Budgets"
- Scottish Solicitors' Discipline Tribunal
- "One-shot" rule sees rejection income soar
- Law without frontiers
- CJEU decision supports LPP protections
- Society thank-you for STARTS support
- From the Brussels Office
- Law reform roundup
- Expertise plus: promoting a sector strength
- Paralegal pointers
- What to do about client interest?
- Still free to market?
- New year, new contact
- Ask Ash
- Paying homage to King Cash