Harmonisation of insolvency law at EU level

Studju 15-04-2010

This note identifies and outlines disparities between national insolvency laws, which can create obstacles, competitive advantages and/or disadvantages and difficulties for companies having cross-border activities or ownership within the EU. In particular, it provides a list of problems which might occur in the absence of common rules on insolvency, such as problems related to insolvency of corporate groups, liability of shareholders being nationals of different Member States, reference to national laws for the insolvency of 'Community' companies and strategic cross-border movements for insolvency purposes. In addition, the note identifies a number of areas of insolvency law where harmonisation at EU level is worthwhile and achievable. Lastly, it evaluates to what extent harmonisation of insolvency law could facilitate further harmonisation of company law in the EU.