DefinePK

Abstract

<jats:p>The court has since the dawn of modern company law enjoyed the jurisdiction to order the liquidation of a solvent company. Now radical change has been introduced in the world, in the field of winding up of the companies since the incorporation of the companies in the world. Different jurisdictions like USA in shape of Chapter 11 of bankruptcy code 1978, UK in shape of scheme of arrangements, workout plan etc., South Africa in shape of appointing Judicial Management and Australia in shape of Official Manager have developed various set of rules and regulations dealing with insolvency and other liquidations problem, when company is subject to financial distress, and also alternative corporate rescue mechanism to deal with the corporate disputes of similar nature between management of the companies and others. In this modern corporate world the investor would choose the place where he has more opportunities and protection to his capital. Favorable substantive and procedural law and rules which are sympathetic towards redress of his corporate dispute are the requirement of an investor. Insolvency jurisdictions of UK and USA are more favorable to the foreign investors because there is a sophisticated and more adequate procedural advantage. This paper also aims, inter alia, to analyze the new techniques prevalent in various jurisdictions of the USA and The UK.</jats:p>