Durability of Hong Kong's Scheme-based Reorganisation System
A corporate reorganisation system that ensures optimal development of distressed companies' assets helps promote economic development. In many developed economies, faltering firms are reorganised through a formal corporate reorganisation procedure. The Hong Kong government has recently recommended the enactment of such a procedure on the assumption that the existing corporate and insolvency framework is ill-equipped to restructure failing companies. This book rebuts this assumption through an assessment of the efficiency of the judicially-developed reorganisation system that has emerged as a result of the failure to introduce a formal reorganisation procedure a decade ago. It argues that since an efficient alternative reorganisation system has been locked in for Hong Kong for more than a decade, a purposely-designed reorganisation regime is no longer imperative for this region.
Corporations and Associations Law