Regulating Share Capital Transactions and Creditor Protection: A Multi-Faceted Model

Fritz Ewang

    Research output: Contribution to journalArticle

    Abstract

    This article reviews and addresses the question of the regulation of share capital and the protection of corporate creditors. It highlights how the efficacy of the legal capital regime in effectively and adequately protecting corporate creditors has been debated upon in Australia and internationally by lawyer-economists. It submits that despite unanimous consensus that share capital rules no longer provide an appropriate means of safeguarding creditors' interests, difficulties still linger in fashioning a coherent and cohesive system for an optimum and efficient means of regulation. Building on existing debate, the article argues that while haphazardly implemented to adequately address the issue of creditor protection. Using a socio-legal analysis of the legislative, judicial and regulatory instruments from a comparative perspective, it concludes by developing a broaer framework suggesting a shift in paradigm from reliance on share capital to a move to solvency and directors' greater responsibilities as optimum and efficent regulatory design for creditor protection.
    Original languageEnglish
    Pages (from-to)1-23
    Number of pages23
    JournalAustralian Journal of Corporate Law
    Volume21
    Issue number2
    Publication statusPublished - 2007

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