Rethinking corporate rescue law in Vietnam under the perspectives of the United Kingdom and Canada

Duong, Hiep Thanh

Abstract

This thesis examines how the models of Debtor-in-Possession (DIP), the Professional-in-Possession (PIP) and the hybrid models are adopted in the administration of corporate rescue under insolvency laws of the United Kingdom, Canada and Vietnam. The thesis’ aims are to evaluate the effectiveness of these models under the rescue laws of three countries and offer Vietnam recommendations to improve the effectiveness of its law. This thesis employs the socio legal methodology supported by the doctrinal and comparative methods to respond to the inquiries of how three models of rescue administration are employed under the insolvency legislation of the countries, what benchmarks can be used to evaluate the effectiveness of rescue law and what lessons Vietnam can learn from the best practices emerging from the UK and Canada to enhance the effectiveness of its rescue law.

The selected countries adopt diverse approaches to the models of rescue administration. The UK introduces three different rescue procedures, the Administration and the Creditor Voluntary Arrangement under the Insolvency Act 1986 and the Scheme of Arrangement under the Companies Act 2006. Vietnam introduces only one rescue procedure under the Bankruptcy Law 2014 (BL2014), while Canada offers two procedures under the Bankruptcy and Insolvency Act and the Companies Creditor Arrangement Act. In assessing rescue laws of the selected countries under four benchmarks of time and cost, expertise, creditor participation and abuse management, Canadian law appears to satisfy with the four benchmarks the most. Based on the comparison’s result, the thesis recommends Vietnam to shorten the time for creditors to approve a rescue plan, tighten the standards for licensing and monitoring insolvency practitioners and provide for a priority for the rescue finance to encourage creditor participation. Importantly, Vietnam should facilitate a suitable environment for the BL2014 to operate by sufficiently developing judicial expertise and minimising the state’s intervention in corporate insolvency.

Citation

Duong, H. T. Rethinking corporate rescue law in Vietnam under the perspectives of the United Kingdom and Canada. (Thesis). University of the West of England. Retrieved from https://uwe-repository.worktribe.com/output/3218771

• Thesis Type: Thesis
• Deposit Date: Sep 23, 2019
• Publicly Available Date: Jul 22, 2020
• Public URL: https://uwe-repository.worktribe.com/output/3218771
• Award Date: Jul 13, 2020