CS Professional · Insolvency and Bankruptcy - Law and Practice · Group Insolvency
Meridian Textiles Ltd, an Indian company, is the parent of two foreign subsidiaries, each with its own creditors in different countries. A candidate is asked which UNCITRAL instrument deals specifically with the insolvency of several members of one enterprise group. Which is the correct instrument?
The UNCITRAL Legislative Guide on Insolvency Law, Part Three, titled Treatment of Enterprise Groups in Insolvency, deals with the insolvency of multiple members of an enterprise group. The arbitration, e-commerce and secured transactions models address different subjects and give no group insolvency framework.
- AUNCITRAL Legislative Guide on Insolvency Law, Part Three: Treatment of Enterprise Groups in InsolvencyCorrect
- BUNCITRAL Model Law on International Commercial Arbitration
- CUNCITRAL Model Law on Electronic Commerce
- DUNCITRAL Model Law on Secured Transactions
Explanation
UNCITRAL addressed enterprise groups in Part Three of its Legislative Guide on Insolvency Law. The other instruments cover arbitration, e-commerce and secured transactions, so they do not deal with group insolvency.
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