The Social Dynamics of Corporate Insolvency Law and Workers/Employees of Distressed Companies: Comparing Select Asian Jurisdictions

The recent rise of the modern state and market-driven economies in Asia has been accompanied by a modernisation of their insolvency laws. The centerpiece of such laws has been improved inclusivity, time-bound resolution of corporate distress, and a growing emphasis on viable rescue, social welfare, and preservation of the human (social) capital. In this vein, it has become more and more recognised that the collapse of a corporate entity may have substantial and across-the-board effects on a number of people associated with it, their life and livelihoods. While the notion of ‘public interest’ is an important element of various areas of law, as far as its interface with insolvency law is concerned, it has received minimal attention. Going beyond the paradigm of neoclassical economics, which treats workmen like any other factor(s) of production, this research focusses on the human and social dynamics of corporate insolvency laws, in their applicability to the employees of the distressed companies.