Abstract
To date, in the articles and publications on the insolvency process, the primary objective of the insolvency process was emphasized – to balance the protection of legal interests of entrepreneurs and their creditors. The author's article, focusing on the basic principles of the insolvency of legal entities, aims at analyzing and examining the link of applicable principles of insolvency processes to preconditions for outstanding business environment. Focus of the topic indirectly addresses the potential of the regions and human capital. Methods applied in the study: 1) general scientific – analytical, descriptive, inductive and deductive; 2) interpretation of legal norms – grammatical, systematic and teleological. Materials, used in the study are political planning documents, documents of international institutions, normative acts, scientific and law literature, and dictionaries. Issues covered in the study: impact of the insolvency proceedings on preconditions for outstanding business environment and the role of the human capital; potential of the regions. Authors, resulting from the study, made the following conclusions: reforms of the insolvency law sphere have formally reached the primary goals, set out in the government level documents, however linkage with higher-level policy planning documents has remained in the second plan during reform process.
Highlights
Fast and effective – these are the two basic principles that characterize the insolvency process, as defined in Section 6 of the Insolvency Law [1]
Authors made the conclusion that changeable purpose of insolvency process through the normative act changes came to the current regulation, where the interests of creditors prevail over the renewal of the debtor’s solvency in order to promote the process of formation of the outstanding business environment
Creating an outstanding business environment, it cannot be separated from the statement, made in the Development Plan – Vision of Latvia in 2020: “Economic Breakthrough – for the Greater Well-Being of Latvia!” and the territorial potential described in Paragraphs 52 and 53 of the Development Plan are medium-term priorities
Summary
Fast and effective – these are the two basic principles that characterize the insolvency process, as defined in Section 6 of the Insolvency Law [1]. Authors made the conclusion that changeable purpose of insolvency process through the normative act changes came to the current regulation, where the interests of creditors prevail over the renewal of the debtor’s solvency in order to promote the process of formation of the outstanding business environment. The insolvency process proceedings, its results and reflection on the business environment in both urban and rural areas are important factors in human capital, that is defined as the basic value and productivity of Latvia’s most important resource. This statement is stipulated by Latvia 2030 as an essential factor
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