This article was co-authored by Victoria Hoon
Why bother administering assetless companies?
To a creditor, it may seem futile to administer assetless/ low-asset companies as any prospects of recovery are likely to be minimal. However, there are strong public interest considerations in ensuring that there are mechanisms to discourage poor corporate behaviour, deter illegal conduct and ensure good governance and fair commercial conduct. Without such mechanisms, assets can simply be moved into another company or appropriated by an individual, without risk of scrutiny or any civil or criminal consequences.
Options for administering assetless companies
In its Legislative Guide on Insolvency Law, the United Nations Commission on International …
Read the full article at: https://www.nortonrosefulbright.com/en/restructuring-touchpoint/blog/2024/02/assetless-administrations-and-the-role-of-the-public-liquidator