Perspectives of Winding Up of a Company: Comparative Analysis of UK, USA and EU

Abstract

Companies across the globe are often started and, at the end of their operations, undergo a legal process identified as winding up. The legal process of starting a business or company differs greatly from the ending or winding-up process. Some common practices identified with closing a business entail compulsory winding up and voluntary winding up based on their jurisdictions. An investigation of some of the nations to be applied in the study include the European Union, the United States, and the United Kingdom of Great Britain. The research will also examine the efficacies associated with the legal processes in these three jurisdictions. The study will explore the legal provisions associated with the Insolvency & Bankruptcy Code and the Companies Act practiced in the European Union. An emphasis on the challenges companies faces when in the winding-up process or insolvency will be highlighted. It will offer an opportunity to navigate the intricacies of insolvency laws alongside their historical evolution. The underlying provisions and principles governing the operations of winding up a company in these three nations will be discussed to offer valuable information for the study. Lastly, the article will tabulate the variations and similarities in the three regimes.