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Dutch report for World Bank survey on the conflicts between insolvency law and company law

In February 2014, a team of researchers, under the coordination of Professor Michael Veder (Radboud University of Nijmegen) and Professor Bob Wessels (Leiden Law School), was invited to contribute to a large research project jointly led by the World Bank and the Banca d’Italia. The project focuses on the conflicts between insolvency law and company law in general and on the legal position of shareholders in particular. On the 15th of September, a National report on these subjects under Dutch law was sent to both the World Bank and the Banca d’Italia.

The Dutch report addresses, next to some general questions concerning national insolvency and company law, four main issues from a national perspective:

(i) the respective powers of the board of a company and the shareholders’ meeting in insolvency proceedings;
(ii) the substantive and procedural rights of shareholders in a company subject to insolvency proceedings;
(iii) the possibility of using the old /same corporate entity as a vehicle for the reorganisation of the company; and
(iv) the possibility of the shareholders to retain a participation in the
reorganized company, and, if they are allowed to retain a participation, the allocation of value between creditors and shareholders.

For a summary of the main results, see the memo of one of the report’s co-authors Tom Dijkhuizen (Leiden Law School).

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