Asia: Insolvency/Bankruptcy/Re-Structuring

The Insolvency and Bankruptcy Code, 2016 (“IBC”) seeks to facilitate the resolution of insolvency, maximise the value of a corporate debtor’s assets and balance the interests of stakeholders. A central aspect of this framework is the identification and preservation of assets available for resolution or liquidation. However, the position becomes more complex when a corporate debtor holds assets acquired using foreign contributions regulated under the Foreign Contribution (Regulation) Act, 2010 (“FCRA”).

When a company enters liquidation, directors often assume their responsibilities have ended. However, they retain critical statutory obligations to assist the liquidator, provide company records, and respond to inquiries about the company's affairs. Understanding these continuing duties is essential, as failure to cooperate can result in penalties, court orders, and potential personal liability.

For many business owners, the prospect of insolvency raises a confronting question about their future eligibility to serve as company directors. While business failure can be a difficult experience...

In Australian corporate insolvency law, administration is a formal process under Part 5.3A of the Corporations Act 2001 (Cth). An external administrator is appointed to take control of a company while its business, property, affairs and financial circumstances are investigated and creditors consider the company’s future.

The jurisprudence surrounding corporate criminal liability and insider trading in India has undergone considerable doctrinal refinement, particularly in relation to the attribution of knowledge, the evidentiary threshold for establishing regulatory contraventions and the relevance of commercial intention in determining liability.

The Insolvency and Bankruptcy Code, 2016 (IBC) was originally built as a monolithic architecture. Its primary mandate was clear: when a company defaults, the entirety of its corporate entity must be pulled into the Corporate Insolvency Resolution Process (CIRP). While this unified entity approach worked seamlessly for manufacturing units or simple corporate structures, its application to the real estate sector triggered catastrophic systemic failures. In real estate, a single developer frequently manages dozens of independent housing projects across varying stages of lifecycle, funding, and construction.