"UNCITRAL Model Law is not a law in its own right and has no force." Comment.

The UNCITRAL Model Law on Cross-Border Insolvency adopted in 1997 is designed to assist States to equip their insolvency laws with a modern, harmonized and fair framework to address more effectively instances of cross border insolvency. Although the number of cross border insolvency cases has increased significantly, the adoption of national or international legal regimes equipped to address the issues raised by those cases have not kept pace. The following circumstances necessitated the harmonization of legislations across nations with reference to cross border insolvency: Continuing global expansion of trade and investment Increasing evidence of cross border insolvency due to integration of trade across countries National Insolvency Laws of different countries have by and large not kept pace with the trend. Inadequate and inharmonious legal approach due to difference in regulatory platform across countries that hampers the rescue of financially troubled businesses and impede the protection of assets of the insolvent debtors against dissipation. The UNCITRAL Model law has been adopted in as many as 44 countries and therefore forms part of international best practices of cross border insolvency.