Governance of Distressed Firms

Governance of Distressed Firms

Corporations, Globalisation and the Law series

David Milman

The concept of a distressed firm covers businesses that are struggling, but have not yet entered formal insolvency, as well as those businesses that are undergoing a formal insolvency process. With reference primarily to English law, this study encompasses both limited liability companies and limited liability partnerships with a focus on the regulation both of company directors and insolvency practitioners. It offers recommendations for improvements in governance mechanisms and notes that many of the governance shortfalls that occur can be related to the ease of access given to those who wish to trade with the benefit of limited liability.

Chapter 4: Governance post formal insolvency regime commencement

David Milman

Subjects: law - academic, company and insolvency law, corporate law and governance


This central chapter will consider the relationships that exist between insolvency practitioners (IPs), corporate management and various interested stake- holder groups once formal insolvency proceedings have commenced. Mechanisms designed to control the actions of IPs will be evaluated in the light of the stewardship relationship created when an IP takes up office. These mechanisms include formal legal rules (whether imposed by statute, secondary legislation or created through common-law processes) and self- regulatory standards. The study will cover a wide range of aspects of corporate insolvency practice.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information