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2010

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Charles Zhen Qu Dr

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Path Dependence And Durability Of Hong Kong's Existing Corporate Reorganization System, Charles Zhen Qu Dr Dec 2010

Path Dependence And Durability Of Hong Kong's Existing Corporate Reorganization System, Charles Zhen Qu Dr

Charles Zhen Qu Dr

A corporate reorganization system that ensures optimal deployment of distressed companies’ assets helps promote economic development. In many developed economies, faltering firms are reorganized through a formal corporate reorganization procedure. The Hong Kong government has recently recommended the enactment of such a procedure on the assumption that the existing corporate and insolvency framework is ill-equipped to restructure failing companies. This article rebuts this assumption through an assessment of the efficiency of the judicially-developed reorganization system that has emerged as a result of the failure to introduce a formal reorganization procedure a decade ago. It argues that since an efficient alternative ...