A foreign representative has applied to the court for recognition of the foreign proceedings. When shall such a foreign proceedings be recognized under the UNCITRAL Model Law?
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2019
A foreign representative has applied to the court for recognition of the foreign proceedings. When shall such a foreign proceedings be recognized under the UNCITRAL Model Law?
Answer & Explanation:
Decision to recognize a foreign proceeding (Article 17 of the UNCITRAL Model Law) Subject to Article 6, a foreign proceeding shall be recognized under UNCITRAL Model Law if: The foreign proceeding is a proceeding within the meaning as defined under Article 2; The foreign representative applying for recognition is a person or body within the meaning as defined under Article 2; The application meets the requirements of Article 15; and The application has been submitted to the court referred to in Article 4. The foreign proceeding shall be recognized as a foreign main proceeding if it is taking place in the State where the debtor has the centre of its main interests (COMI); or as a foreign non-main proceeding if the debtor has an establishment. The purpose of Article 17 is to indicate that, if recognition is not contrary to the public policy of the enacting State and if the application meets the above said requirements, recognition will be granted as a matter of course. A decision to recognize a foreign proceeding would normally be subject to review or rescission, as decision of any other court.
Topics: Insolvency Law
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