Eligibility, application and commencement

• Author: United Nations Commission on International Trade Law
• Pages: 12-17

12 UNCITRAL Legislative Guide on Insolvency Law for Micro- and Small Enterprises

of employees’ rights and interests in insolvency are complied with in simplied

insolvency proceedings. ose requirements may include, in particular, the

requirement to keep the MSE debtor’s employees properly informed, either directly

or through their representatives, about the commencement of a simplied

insolvency proceeding and all maers arising from that proceeding aecting their

employment status and entitlements.

F. Eligibility, application and commencement

Eligibility

292. e insolvency law providing for a simplied insolvency regime should

establish the criteria that debtors must meet in order to be eligible for simplied

insolvency proceedings, minimizing the number of such criteria, and specify under

what conditions creditors of the eligible debtors may also apply for commencement

of simplied insolvency proceedings with respect to those debtors.

(See recommendations 8, 9 and 14–16.)

Commencement criteria and procedures

293. e insolvency law providing for a simplied insolvency regime should:

(a) Establish transparent, certain and simple criteria and procedures for com-

mencement of simplied insolvency proceedings;

(b) Enable applications for simplied insolvency proceedings to be made and

dealt with in a speedy, ecient and cost-eective manner; and

(c) Establish safeguards to protect debtors, creditors and other parties in inter-

est, including employees, from abuse of the application procedure.

(See the text preceding recommendation 14.)

Commencement on debtor application

Application

294. e insolvency law providing for a simplied insolvency regime should

allow eligible debtors to apply for commencement of a simplied insolvency