Rajah & Tann Provides Singapore Jurisdictional Insights to the Guide on the Treatment of Insolvent Micro and Small Enterprises in Asia
The Guide on the Treatment of Insolvent Micro and Small Enterprises in Asia (“Guide“) has been jointly released by the Asian Business Law Institute and the International Insolvency Institute as part of their Asian Principles of Business Restructuring Project. Rajah & Tann Singapore has assisted in this publication by providing Singapore jurisdictional insights.
The Guide identifies five key principles for more immediate adoption by jurisdictions as building blocks of a well-functioning micro and small enterprise insolvency framework, and six aspirational principles that should ideally be considered and adopted by jurisdictions over the longer term to provide micro and small enterprises with a more comprehensive legal and institutional environment to deal with financial distress. This tiered approach, unique among all current literature, is designed by considering the extreme diversity of institutional development of Asian jurisdictions and with the hope of assisting policymakers better digest the recommendations made in this Guide.
The Guide was produced with input from experts from Australia, Brunei, Cambodia, China, Hong Kong Special Administrative Region of China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand and Vietnam, and with the involvement of international organisations like INSOL International, the United Nations Commission on International Trade Law and the World Bank.
Sim Kwan Kiat, Head of Rajah & Tann Singapore’s Restructuring & Insolvency Practice, has provided input from the Singapore perspective for the Guide.
The full Guide can be read here.