In the aftermath of the global COVID-19 pandemic, many jurisdictions have adopted or are exploring sim- plified insolvency regimes for small businesses.1 The rush to implement reforms in many jurisdictions, includ- ing Australia, has compromised the effectiveness of these reforms. To provide guidance on addressing the much needed relief to micro, small and medium-sized enterprises (MSMEs), United Nations Commission on International Trade Law’s (UNCITRAL) Working Group V (WGV), which focuses on insolvency, finalised rec- ommendations for simplified insolvency regimes in May 2021. In July, UNCITRAL formalised these rec- ommendations by adopting them under the title “UNCITRAL Legislative Guide on Insolvency Law for Micro and Small Enterprises” as part five of the UNCITRAL Legislative Guide on Insolvency Law and as part of the UNCITRAL MSMEs text series. Although the recom- mendations were adopted, the commentary was only adopted in principle, permitting WGV to finalise the commentary in its next meeting which will take place in December 2021.
|Journal||Insolvency Law Bulletin|
|Publication status||Published - Oct 2021|