PROBLEM OF IMPERFECTION OF THE CROSS-BORDER BANKRUPTCY PROCEDURE: THEORETICAL-METHODOLOGICAL ASPECT

Abstract

The relevance of the research is due to the presence of a number of problems in the framework of the methodology of cross-border insolvency. The article focuses on the need to disclose information about the obligations of the group and affiliated organizations in the framework of the cross-border insolvency procedure, to exclude the possibility of manipulation and abuse of jurisdictions in determining the center of primary interest (COMI-standard) when declaring members of a group or interdependent persons bankrupt. The main approach is to change the principle of limited liability, the ability to open the main and minor parallel (auxiliary) proceedings in a bankruptcy case based on the criterion of incorporation of controlling persons, expanding the concept of controlled debt in order to prevent the initiation of fictitious and deliberate bankruptcies and damage to the economic system of the host country. The materials of the article are of practical value for public authorities that control the cases of cross-border insolvency (bankruptcy), practicing experts in the field of bankruptcy of members of a group of legal entities that have branches and separate subdivisions in two or more receiving countries. At the heart of a research of the procedure of cross-border insolvency, the following methods are used: theoretical (collecting basic data); statistical (collecting, the report and the analysis of data, processing of the obtained data); empirical (studying of the national and international legislative standards regulating holding procedures of bankruptcy and cross-border bankruptcy, standard documentation; observation). (C) 2019 Published by Future Academy www.FutureAcademy.org.UK