The UNCITRAL Model Law is not a law in its own right and has no force. It provides a legal text for incorporation into national law. Discuss the circumstances that necessitated the development of a Model Law on cross bor

In order to create and maintain harmony in regulatory aspects of insolvency mechanism across countries the United Nations Commission developed a Model Law on Cross-Border Insolvency. The Model Law is not a law in its own right and has no force. It provides a legal text for incorporation into national law. The following circumstances necessitated the harmonization of legislations across nations with reference to cross-border insolvency: Continuing global expansion of trade and investment. Increasing incidences 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 approaches due to differences in regulatory platform across countries that hampers the rescue of financially troubled businesses and impede the protection of the assets of the insolvent debtor against dissipation.