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Reforming The Governance Of Corporate Rescue: The Enterprise Act 2002

Author

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  • John Armour
  • Rizwaan Jameel Mokal

Abstract

English corporate insolvency law has been reshaped by the Enterprise Act 2002. The Act was intended to ‘to facilitate company rescue and to produce better returns for creditors as a whole’. Administrative receivership, which placed control of insolvency proceedings in the hands of banks, is for most purposes being abolished. It is being replaced by a ‘streamlined’ administration procedure. Whilst it will still be possible for banks to control the appointment process, the administrator once in office owes duties to all creditors and must act in accordance with a statutory hierarchy of objectives. In this article, we seek to describe, and to evaluate, this new world of corporate rescue.

Suggested Citation

  • John Armour & Rizwaan Jameel Mokal, 2004. "Reforming The Governance Of Corporate Rescue: The Enterprise Act 2002," Working Papers wp289, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp289
    Note: PRO-2
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    File URL: https://www.jbs.cam.ac.uk/cbrwp289/
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    Cited by:

    1. Régis Blazy & Nirjhar Nigam, 2019. "Corporate insolvency procedures in England: the uneasy case for liquidations," European Journal of Law and Economics, Springer, vol. 47(1), pages 89-123, February.

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    More about this item

    Keywords

    corporate insolvency; corporate rescue; secured credit;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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