What Could ASEAN Learn about Bankruptcy Law from ASEAN Partner Countries, China and Japan?

Suwinto Johan, Amad Sudiro, Ariawan Gunadi

Abstract


By 2021, Japan will have the third-largest economy in the world, behind China, which is currently the world's second-largest economy. China accounts for 17.9% of the global gross domestic product (GDP), while Japan accounts for 5.4 percent. In 2022, the Association of Southeast Asian Nations (ASEAN) and Asia Pacific countries, such as Australia, will establish the RECP (Regional Comprehensive Economic Partnership), becoming the world's largest free trade area cooperative bloc. On the other hand, it brings within several investment risks. Undertakings succumbing in the financial hardships or financial default will be manifested. Diverse legal systems result in different approaches to resolving defaulted businesses. For businesspeople, this disparity in the legal system creates legal uncertainty. The goal of this study is to describe how the bankruptcy system works in RCEP member countries and what ASEAN nations may do to improve their bankruptcy laws. The normative legal method is used in this study. This method compares the legal systems of the top ASEAN countries and other RCEP members. This analysis concludes that ASEAN bankruptcy legislation can be improved by using current systems from other ASEAN and RCEP nations. When faced with bankruptcy, the consistency of regulations is supposed to give legal certainty for corporate actors. This will also provide investors from other countries with a sense of security.

Keywords


ASEAN; Bankruptcy Law; Regional Cooperation; Cross-border Bankruptcy

Full Text:

PDF

References


Azmi, Ruzita, Adilah Abd Razak, and Siti Nur Samawati Ahmad. Discharge in Bankruptcy: A Comparative Analysis of Law and Practice between Malaysia, Singapore and the United Kingdom (UK) – What Can We Learn? Commonwealth Law Bulletin. Vol. 43. Routledge, 2017. https://doi.org/10.1080/03050718.2017.1413989.

Bobyleva, Alla, and Olga Lvova. “The Bankruptcy Law and Its Enforcement in Russia Keywords :†E-Proceeding of the 27th NISPAcee Annual Conference 27 (2019).

Casey, Anthony J. “Chapter 11’s Renegotiation Freamwork and The Purpose of Corporate Bankruptcy.†Columbia Law Review 120, no. 7 (2020): 1709–70. https://heinonline.org/HOL/LandingPage?handle=hein.journals/clr120&div=44&id=&page=.

Clement, Claudiu. “Machine Learning in Bankruptcy Prediction - A Review.†Journal of Public Administration, Finance and Law, no. 17 (2020): 20.

Cojocaru, Radion, and Igor Soroceanu. “The Analysis Of The Comparative Law Elements On The Activity Of Mercenaries In The Experience Of The Commonwealth Of Independent States (CIS).†Fist Iustitia 1 (2019): 80–87.

Das, Ishita. “The Need for Implementing a Cross-Border Insolvency Regime within the Insolvency and Bankruptcy Code, 2016.†Vikalpa The Journal of Decision Makers 45, no. 2 (2020): 104–14. https://doi.org/10.1177/0256090920946519.

Dijck, Gijs van, Ruben Hollemans, Monika Maśnicka, Catarina Frade, Lorenzo Benedetti, Lucilla Galanti, Paula Fernando, et al. “Insolvency Judges Meet Strategic Behaviour: A Comparative Empirical Study.†Maastricht Journal of European and Comparative Law 27, no. 2 (2020): 158–77. https://doi.org/10.1177/1023263X20906669.

Epstein, Lee, Urška Šadl, and Keren Weinshall. “The Role of Comparative Law in the Analysis of Judicial Behavior.†American Journal of Comparative Law, 2020, 1–26.

Fauzi, M. “Insolvency within Bankruptcy: The Case in Indonesia.†SHS Web of Conferences 54 (2018): 1–5. https://doi.org/10.1051/shsconf/20185406004.

Huaxia. “World’s Largest Free Trade Deal Takes Effect on First Day of 2022,†2022. http://www.xinhuanet.com/english/20220101/2aaf3d71cb99477a92f2507caa6740cb/c.html.

Johan, Suwinto. “Knowing Company Secrets Through Employee Posts on Social Media.†Diponegoro Law Review 6, no. 2 (2021): 203–16. https://doi.org/10.14710/dilrev.6.2.2021.203-216.

———. “Potential Systemic Risk Effects Of Credit Relaxation In The Financial Industry As The Effect The COVID-19.†Jurnal Manajemen Bisnis Dan Kewirausahaan 4, no. 4 (2020): 87–93. https://doi.org/10.24912/jmbk.v4i4.8661.

Johan, Suwinto, and Ariawan. “Consumer Protection in Financial Services.†Legality : Jurnal Ilmiah Hukum 29, no. 2 (2021): 173–83.

———. “Corporate Liability for Creditors’ Losses during the Covid-19 Pandemic.†Media Hukum 28, no. 1 (2021): 15–28. https://doi.org/10.18196/jmh.v28i1.10566.

Kilborn, Jason J. “Small Business Bankruptcy Reform in the Arab World: Two Steps Forward, One Step Back.†Arab Law Quarterly 1 (2020): 1–36. https://doi.org/10.1163/15730255-BJA10064.

Kiseleva, Irina Anatolievna, Vladimir Ivanovich Kuznetsov, Natalia Alekseevna Sadovnikova, Andrey Vasilyevich Pikalov, and Arina Andreevna Dolgaya. “Models of Assessing The Probability Bankruptcy of Enterprises.†Journal of Critical Reviews 7, no. 9 (2020): 1111. http://creativecommons.org/licenses/by/4.0/.

Kliestikova, Jana, Maria Misankova, and Tomas Kliestik. “Bankruptcy in Slovakia: International Comparison of the Creditor’s Position.†Oeconomia Copernicana 8, no. 2 (2017): 221–37. https://doi.org/10.24136/oc.v8i2.14.

Kuzmin, Evgeny, A., Marina V. Vinogradova, and Andrey S. Novitsky. “Bankruptcy Dynamics of Companies in Russia.†International Transaction Journal of Engineering , Management , & Applied Sciences & Technologies 11, no. 13 (2020): 1–11. https://doi.org/10.14456/ITJEMAST.2020.254.

Levitin, Adam J. “Bankruptcy’s Lorelei: The Dangerous Allure of Financial Institution Bankruptcy.†North Carolina Law Review 97, no. 2 (2018). https://doi.org/10.2139/ssrn.3120145.

Mackevicius, Jonas, Ruta Sneidere, and Daiva Tamuleviciene. “The Waves of Enterprises Bankruptcy and The Factors That Determine Them: The Case of Latvia and Lithuania.†Entrepreneurship And Sustainability Issues 6, no. 1 (2018): 190–210.

McCormack, Gerard, and Wai Yee Wan. “Transplanting Chapter 11 of the US Bankruptcy Code into Singapore’s Restructuring and Insolvency Laws: Opportunities and Challenges.†Journal of Corporate Law Studies 19, no. 1 (2019): 69–104. https://doi.org/10.1080/14735970.2018.1491680.

Mojašević, Aleksandar S, and Aleksandar Jovanović. “Reasonable Time And Bankruptcy Of Socially-Owned Enterprises.†Facta Universitatis 19, no. 1 (2021): 11–25.

Morawska, Sylwia, Blazej Prusak, Przemysław Banasik, Katarzyna Pustulka, and Bartosz Groele. “Bankruptcy Law Severity for Debtors: Comparative Analysis Among Selected Countries.†European Research Studies Journal 23, no. 2 (2020): 659–86. https://doi.org/10.35808/ersj/1847.

Nurudin, Agus. “Bankruptcy and Postponement of Debt Payments for Large Companies.†International Journal of Economics and Business Administration 8, no. 2 (2020): 388–95. https://doi.org/10.35808/ijeba/469.

Prusak, Błażej. “Review of Research into Enterprise Bankruptcy Prediction in Selected Central and Eastern European Countries.†International Journal of Financial Studies 6, no. 3 (2018): 1–28. https://doi.org/10.3390/ijfs6030060.

Reitz, John C. “How to Do Comparative Law.†The American Journal of Comparative Law 46, no. 1980 (1998): 617–36.

Schihalejev, Mari. “Court Supervision of the Determination of the Votes at the First General Meeting of Creditors in Estonian Bankruptcy Law.†Juridica International 26, no. 08 (2017): 76. https://doi.org/10.12697/ji.2017.26.08.

Secretariat, ASEAN. ASEAN Economic Community Blueprint 2025. The ASEAN Secretariat, Jakarta, 2018. https://doi.org/10.1355/9789814414296-012.

Skvortsova, Tatyana A, Tatyana A Pasikova, Liliya N Vereshchagina, Alexsei N Pozdnishov, and Anna V Sukhovenko. “The Problem of Bankruptcy of Business Entities as a Consequence of the COVID-19 Pandemic.†International Journal of Economics and Business Administration VIII, no. 4 (2020): 828–37.

Soldatenkov, V. Yu, and V. V. Evenko. “Bankruptcy of an Individual in Russia: State and Prospects of Development.†Opcion 34, no. Special Issue 14 (2018): 1136–56.

Staszkiewicz, Piotr, and Sylwia Morawska. “The Efficiency of Bankruptcy Law: Evidence of Creditor Protection in Poland.†European Journal of Law and Economics 48, no. 3 (2019): 365–83. https://doi.org/10.1007/s10657-019-09629-2.

Succurro, Marianna. “Financial Bankruptcy across European Countries.†International Journal of Economics and Finance 9, no. 7 (2017): 132–46. https://doi.org/10.5539/ijef.v9n7p132.

Walter, György, and Jens Valdemar Krenchel. “The Leniency of Personal Bankruptcy Regulations in the EU Countries.†Risks 9, no. 162 (2021): 1–20. https://doi.org/10.3390/risks9090162.

Walters, Adrian. “MODIFModified Universalisms & The Role Of Local Legal Culture In The Making Of Cross-Border Insolvency Law.†Am. Bankr. LJ 93 (2019): 1–85.

Wei, Chuyi. “Bailouts and Bankruptcy Law in China : A Confusion of Law and Policy.†Cambridge Journal of China Studies 12, no. 52 (2017): 50–76.

Yuldashev, Serhiy O., and Valentyna P. Kozyreva. “Classification and Protection of the Rights of Creditors in Bankruptcy Cases.†Scientific Works of National Aviation University. Series: Law Journal “Air and Space Law†2, no. 51 (2019). https://doi.org/10.18372/2307-9061.51.13792.




DOI: http://dx.doi.org/10.20956/halrev.v8i3.3692

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Hasanuddin Law Review (ISSN Online: 2442-9899 | ISSN Print: 2442-9880) is licensed under a Creative Commons Attribution 4.0 International License. Preserved in LOCKSS, based at Stanford University Libraries, United Kingdom, through PKP Private LOCKSS Network program.
 
Indexing and Abstracting:
 
  
 
View full indexing services.