Towards an Effective Scheme-Based Corporate Rescue System for Hong Kong
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Author(s)
Qu, Charles
Griffith University Author(s)
Year published
2012
Metadata
Show full item recordAbstract
Scheme of Arrangement (SOA) was dismissed as a viable restructuring device in the corporate rescue debate towards the end of the last century. This paper demonstrates that SOA can be used effectively to perform corporate rescue functions. This conclusion is based on an assessment of the efficacy of the SOA-based rescue system developed by the Hong Kong courts since the mid-late1990s. The paper points out, however, that the effectiveness of this scheme-based restructuring system can be greatly improved by linking a court-controlled moratorium to the SOA provision in Hong Kong's Companies Ordinance.Scheme of Arrangement (SOA) was dismissed as a viable restructuring device in the corporate rescue debate towards the end of the last century. This paper demonstrates that SOA can be used effectively to perform corporate rescue functions. This conclusion is based on an assessment of the efficacy of the SOA-based rescue system developed by the Hong Kong courts since the mid-late1990s. The paper points out, however, that the effectiveness of this scheme-based restructuring system can be greatly improved by linking a court-controlled moratorium to the SOA provision in Hong Kong's Companies Ordinance.
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Journal Title
Journal of Corporate Law Studies
Volume
12
Issue
1
Copyright Statement
© 2012 Hart Publishing. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Corporations and Associations Law
Law