Publication Type

Report

Version

publishedVersion

Publication Date

5-2022

Abstract

Micro and small enterprises (MSEs) represent the vast majority of businesses in all jurisdictions in Asia. Despite the economic relevance of MSEs and the importance of the insolvency process, most Asian jurisdictions do not have insolvency frameworks that are suitable for MSEs. The COVID-19 pandemic has further exacerbated the woes of these businesses. This Guide is thus prepared with a view of seeking to provide a set of principles or policy recommendations for the implementation of an efficient and effective insolvency framework for MSEs in Asia. These principles or policy recommendations include five key principles suggested for adoption by jurisdictions that seek to implement an attractive insolvency framework for MSEs (Key Principles), and six aspirational principles that should ideally be adopted over time to provide MSEs with a comprehensive legal and institutional environment to deal with financial distress (Aspirational Principles). In the preparation of this Guide, current academic literature, as well as the principles and policy recommendations suggested by international organisations, including international standard-setters such as UNCITRAL and the World Bank, have been taken into consideration to achieve better alignment. As this Guide focuses specifically on Asia which has unique and region-specific features, however, some of the general principles and policy recommendations suggested in existing international literature have been further developed, emphasised or fine-tuned in this Guide. It is hoped that this Guide will provide valuable references to policymakers and other stakeholders alike in Asia as they work towards developing suitable insolvency frameworks for MSEs.

Keywords

MSE, business, insolvency, restructuring, workout, micro and small firms, jobs, entrepreneurship, finance, growth, Asia

Discipline

Asian Studies | Business Organizations Law | Entrepreneurial and Small Business Operations

Research Areas

Corporate, Finance and Securities Law

First Page

1

Last Page

64

Publisher

Asian Business Law Institute & International Insolvency Institute

City or Country

Singapore

Copyright Owner and License

Publisher

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