MEPs reject moves to scrap out of court insolvency
This week the European Parliament voted on new cross-border insolvency rules endorsing the principle of out of court proceedings. Out of court proceedings are globally recognised as effective and rescue-friendly alternatives to formal insolvency proceedings. Amendments had however been introduced that would have deleted such proceedings from the legislation.
Law Society president Nicholas Fluck said:
'We are happy to see that, in the end, the European Parliament came out for insolvency proceedings that promote the rescue of companies, in particular out of court proceedings as used increasingly in the UK and other EU countries, and as advocated by the IMF, World Bank and European Commission.
'A number of other controversial amendments were adopted that could still make rescue proceedings more difficult than is currently the case. We have already raised our concerns about these amendments to the European Commission and will continue our dialogue with all the EU institutions to encourage new EU legislation that genuinely promotes company rescues.'
Notes to Editors
The Law Society wrote to the European Commission before the vote in the European Parliament took place.
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