Paolo Mauro, Nathan Sussman, and Yishay Yafeh
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199272693
- eISBN:
- 9780191603488
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199272697.003.0007
- Subject:
- Economics and Finance, Financial Economics
This chapter analyzes the operations of the Corporation of Foreign Bondholders (CFB) — an association of British investors holding bonds issued by foreign governments — between 1870 and 1913. It ...
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This chapter analyzes the operations of the Corporation of Foreign Bondholders (CFB) — an association of British investors holding bonds issued by foreign governments — between 1870 and 1913. It describes the coordination among creditors fostered by the CFB and evaluates its successes and failures. It is shown that a revamped creditor association might facilitate creditor coordination today and facilitate sovereign debt crisis resolution. The CFB may have had an easier time than a comparable body would have today.Less
This chapter analyzes the operations of the Corporation of Foreign Bondholders (CFB) — an association of British investors holding bonds issued by foreign governments — between 1870 and 1913. It describes the coordination among creditors fostered by the CFB and evaluates its successes and failures. It is shown that a revamped creditor association might facilitate creditor coordination today and facilitate sovereign debt crisis resolution. The CFB may have had an easier time than a comparable body would have today.
Seema Jayachandran and Michael Kremer
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0011
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter discusses the problem of illegitimate debt from a new angle. Instead of focusing on borrowers, it focuses on the role and incentives of creditors who lend to questionable governments for ...
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This chapter discusses the problem of illegitimate debt from a new angle. Instead of focusing on borrowers, it focuses on the role and incentives of creditors who lend to questionable governments for illicit purposes. This approach follows a theme that runs throughout the book: responsibility for bad loans should lie with lenders as much as borrowers. It is argued that as long as borrowing countries are obligated to repay bad debts, lenders will have no incentive to avoid bad loans. Furthermore, once a loan is made to an odious regime, no tribunal can be entrusted to label it as such, and charges of favoritism will always be made against the tribuna's decision.Less
This chapter discusses the problem of illegitimate debt from a new angle. Instead of focusing on borrowers, it focuses on the role and incentives of creditors who lend to questionable governments for illicit purposes. This approach follows a theme that runs throughout the book: responsibility for bad loans should lie with lenders as much as borrowers. It is argued that as long as borrowing countries are obligated to repay bad debts, lenders will have no incentive to avoid bad loans. Furthermore, once a loan is made to an odious regime, no tribunal can be entrusted to label it as such, and charges of favoritism will always be made against the tribuna's decision.
Chris Jochnick and Fraser A. Preston
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This introductory chapter begins with a brief discussion of the real cost of sovereign debt. It then describes the three parts of the book. An overview of the chapters included in this volume is ...
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This introductory chapter begins with a brief discussion of the real cost of sovereign debt. It then describes the three parts of the book. An overview of the chapters included in this volume is presented.Less
This introductory chapter begins with a brief discussion of the real cost of sovereign debt. It then describes the three parts of the book. An overview of the chapters included in this volume is presented.
David Roodman
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter presents an overview of the sovereign-debt initiatives from the last twenty-five years. It examines the programs devised by creditors, namely the World Bank and IMF, during the 1980s and ...
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This chapter presents an overview of the sovereign-debt initiatives from the last twenty-five years. It examines the programs devised by creditors, namely the World Bank and IMF, during the 1980s and 1990s, that aimed at addressing the mounting problem of developing-country debt. The “austerity” lending of the 1980s and the structural adjustment programs of the 1990s are discussed, and the inherent failings that characterized those efforts, including reduced public investment which has led to economic stagnation, are criticized.Less
This chapter presents an overview of the sovereign-debt initiatives from the last twenty-five years. It examines the programs devised by creditors, namely the World Bank and IMF, during the 1980s and 1990s, that aimed at addressing the mounting problem of developing-country debt. The “austerity” lending of the 1980s and the structural adjustment programs of the 1990s are discussed, and the inherent failings that characterized those efforts, including reduced public investment which has led to economic stagnation, are criticized.
Fantu Cheru
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines the politics of policy reform in low-income Africa, and specifically the double standard applied by the creditor countries in dealing with the debts of middle-income Latin ...
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This chapter examines the politics of policy reform in low-income Africa, and specifically the double standard applied by the creditor countries in dealing with the debts of middle-income Latin American and low-income African countries. Whereas the Latin American debt was promptly dealt with by Western creditors because of the risk it posed to the stability of the Western banking system, equal attention was never given to the debt burden of the poorest African countries, whose debts were largely owed to multilateral financial institutions. Finally, the chapter examines the adequacy of the heavily indebted poor countries (HIPC) initiative, which was introduced in 1996 to address the problem of debt owed by low-income countries to the multilateral development banks.Less
This chapter examines the politics of policy reform in low-income Africa, and specifically the double standard applied by the creditor countries in dealing with the debts of middle-income Latin American and low-income African countries. Whereas the Latin American debt was promptly dealt with by Western creditors because of the risk it posed to the stability of the Western banking system, equal attention was never given to the debt burden of the poorest African countries, whose debts were largely owed to multilateral financial institutions. Finally, the chapter examines the adequacy of the heavily indebted poor countries (HIPC) initiative, which was introduced in 1996 to address the problem of debt owed by low-income countries to the multilateral development banks.
Joseph Hanlon
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter addresses the questions: why should poor countries be expected to repay the debts imposed upon them by unelected and repressive governments? Who should shoulder the burden of repaying ...
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This chapter addresses the questions: why should poor countries be expected to repay the debts imposed upon them by unelected and repressive governments? Who should shoulder the burden of repaying the billions of dollars stolen by the likes of Mobutu, Marcos, and Saddam Hussein? How can creditors expect South Africans to pay for loans taken out during the apartheid regime and at that time used as a means of oppression? It argues that loans to certain borrowers or for certain purposes are prima facie illegitimate. This category includes loans to dictators, odious debt (debt used for repression), and extortionate loans. Second, certain types of behavior by lenders can also make a loan illegitimate: usury, money laundering, and gross negligence in lending. When these conditions are met, responsibility for repayment cannot be properly placed on the borrower.Less
This chapter addresses the questions: why should poor countries be expected to repay the debts imposed upon them by unelected and repressive governments? Who should shoulder the burden of repaying the billions of dollars stolen by the likes of Mobutu, Marcos, and Saddam Hussein? How can creditors expect South Africans to pay for loans taken out during the apartheid regime and at that time used as a means of oppression? It argues that loans to certain borrowers or for certain purposes are prima facie illegitimate. This category includes loans to dictators, odious debt (debt used for repression), and extortionate loans. Second, certain types of behavior by lenders can also make a loan illegitimate: usury, money laundering, and gross negligence in lending. When these conditions are met, responsibility for repayment cannot be properly placed on the borrower.
Chris Jochnick
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780195168006
- eISBN:
- 9780199783458
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195168003.003.0007
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter briefly describes the tremendous social and economic costs of overindebtedness and the role of Northern creditors and governments in solving debt problems. It then sets forth legal ...
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This chapter briefly describes the tremendous social and economic costs of overindebtedness and the role of Northern creditors and governments in solving debt problems. It then sets forth legal reasons for the need for debt repudiation and/or relief: (1) the heightened level of responsibility of creditors and Northern governments; (2) violations of human rights, and (3) the illegitimacy of debt. These arguments are based on well-established principles of domestic and international law that are applicable to domestic proceedings and relevant to a future international insolvency mechanism. The arguments serve to challenge popular or political understandings of the legal sanctity of debt, thereby creating space and support for more ambitious solutions to debt crises.Less
This chapter briefly describes the tremendous social and economic costs of overindebtedness and the role of Northern creditors and governments in solving debt problems. It then sets forth legal reasons for the need for debt repudiation and/or relief: (1) the heightened level of responsibility of creditors and Northern governments; (2) violations of human rights, and (3) the illegitimacy of debt. These arguments are based on well-established principles of domestic and international law that are applicable to domestic proceedings and relevant to a future international insolvency mechanism. The arguments serve to challenge popular or political understandings of the legal sanctity of debt, thereby creating space and support for more ambitious solutions to debt crises.
Dr. Ben S. Branch, Hugh M. Ray, and Robin Russell
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306989
- eISBN:
- 9780199783762
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306989.003.0001
- Subject:
- Economics and Finance, Financial Economics
This chapter discusses general liquidation principles and strategies to provide the reader with an overview of the procedure for liquidation under Chapters 7 and 11 of the United States Bankruptcy ...
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This chapter discusses general liquidation principles and strategies to provide the reader with an overview of the procedure for liquidation under Chapters 7 and 11 of the United States Bankruptcy Code. The central focus is on the roles of the players in the liquidation process including the bankruptcy judge, the debtor in possession, the United States Trustee, the secured creditors, and the Creditors' Committee, which represents unsecured creditors such as indenture trustees, bondholders, landlords, trade vendors, and employees.Less
This chapter discusses general liquidation principles and strategies to provide the reader with an overview of the procedure for liquidation under Chapters 7 and 11 of the United States Bankruptcy Code. The central focus is on the roles of the players in the liquidation process including the bankruptcy judge, the debtor in possession, the United States Trustee, the secured creditors, and the Creditors' Committee, which represents unsecured creditors such as indenture trustees, bondholders, landlords, trade vendors, and employees.
Michael Chui and Prasanna Gai
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199267750
- eISBN:
- 9780191602504
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199267758.003.0009
- Subject:
- Economics and Finance, Financial Economics
Explains how policymakers must trade the ex-post costs of creditor coordination failure, which can help discipline sovereign debtors, against the ex-ante costs of debtor moral hazard. The threat of a ...
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Explains how policymakers must trade the ex-post costs of creditor coordination failure, which can help discipline sovereign debtors, against the ex-ante costs of debtor moral hazard. The threat of a liquidity crisis—a creditor run—is shown to be a powerful, albeit blunt, disciplining force in international capital markets, and the chapter explores the circumstances under which official intervention by the IMF can substitute for this discipline. The efficacy of collective action clauses as a means of ameliorating creditor coordination problems is also given a formal treatment.Less
Explains how policymakers must trade the ex-post costs of creditor coordination failure, which can help discipline sovereign debtors, against the ex-ante costs of debtor moral hazard. The threat of a liquidity crisis—a creditor run—is shown to be a powerful, albeit blunt, disciplining force in international capital markets, and the chapter explores the circumstances under which official intervention by the IMF can substitute for this discipline. The efficacy of collective action clauses as a means of ameliorating creditor coordination problems is also given a formal treatment.
Dr. Ben S. Branch, Hugh M. Ray, and Robin Russell
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306989
- eISBN:
- 9780199783762
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306989.003.0010
- Subject:
- Economics and Finance, Financial Economics
This chapter discusses the avenues for liquidating a failed business outside of bankruptcy. While liquidations involving companies of any significant size are typically accomplished through ...
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This chapter discusses the avenues for liquidating a failed business outside of bankruptcy. While liquidations involving companies of any significant size are typically accomplished through bankruptcy, state, and federal equity receiverships and assignments for the benefit of creditors provide alternatives for smaller more localized liquidations. These approaches are more informal and less restrictive than bankruptcy. The roles of the assignor and receiver as liquidator, including duties, costs, powers, and compensation are reviewed. The right of the assignor or receiver to pursue actions under the applicable state Uniform Fraudulent Transfer Act is also discussed.Less
This chapter discusses the avenues for liquidating a failed business outside of bankruptcy. While liquidations involving companies of any significant size are typically accomplished through bankruptcy, state, and federal equity receiverships and assignments for the benefit of creditors provide alternatives for smaller more localized liquidations. These approaches are more informal and less restrictive than bankruptcy. The roles of the assignor and receiver as liquidator, including duties, costs, powers, and compensation are reviewed. The right of the assignor or receiver to pursue actions under the applicable state Uniform Fraudulent Transfer Act is also discussed.
Noel Maurer
- Published in print:
- 2013
- Published Online:
- October 2017
- ISBN:
- 9780691155821
- eISBN:
- 9781400846603
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691155821.003.0006
- Subject:
- Economics and Finance, International
This chapter demonstrates how the Great Depression allowed Herbert Hoover and Franklin Roosevelt to pull back from Theodore Roosevelt's imperial commitment. The Depression facilitated the end of the ...
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This chapter demonstrates how the Great Depression allowed Herbert Hoover and Franklin Roosevelt to pull back from Theodore Roosevelt's imperial commitment. The Depression facilitated the end of the first American empire by breaking up the coalition between creditors and direct investors. Under Depression conditions, however, governments faced a painful bind: they could maintain payments on their foreign debt at the cost of austerity measures that undermined political stability; or they could impose tax hikes that directly influenced the profitability of foreign direct investments; or they could default. In the battle between bondholders and direct investors, the direct investors won: the Depression had devastated the domestic influence of the financiers.Less
This chapter demonstrates how the Great Depression allowed Herbert Hoover and Franklin Roosevelt to pull back from Theodore Roosevelt's imperial commitment. The Depression facilitated the end of the first American empire by breaking up the coalition between creditors and direct investors. Under Depression conditions, however, governments faced a painful bind: they could maintain payments on their foreign debt at the cost of austerity measures that undermined political stability; or they could impose tax hikes that directly influenced the profitability of foreign direct investments; or they could default. In the battle between bondholders and direct investors, the direct investors won: the Depression had devastated the domestic influence of the financiers.
Michael Chui and Prasanna Gai
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199267750
- eISBN:
- 9780191602504
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199267758.003.0010
- Subject:
- Economics and Finance, Financial Economics
Explores the circumstances under which the imposition of statutory debt restructuring mechanisms and/or debt standstills can trigger a ‘rush for the exits’ by creditors. Given the possibility of such ...
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Explores the circumstances under which the imposition of statutory debt restructuring mechanisms and/or debt standstills can trigger a ‘rush for the exits’ by creditors. Given the possibility of such creditor pre-emption, it also examines how the IMF and the official sector can galvanize private sector involvement by providing ‘catalytic finance’. Concludes with an empirical assessment of the extent of debtor moral hazard—the main reason cited against the adoption of a statutory approach to crisis management.Less
Explores the circumstances under which the imposition of statutory debt restructuring mechanisms and/or debt standstills can trigger a ‘rush for the exits’ by creditors. Given the possibility of such creditor pre-emption, it also examines how the IMF and the official sector can galvanize private sector involvement by providing ‘catalytic finance’. Concludes with an empirical assessment of the extent of debtor moral hazard—the main reason cited against the adoption of a statutory approach to crisis management.
Michael Chui and Prasanna Gai
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199267750
- eISBN:
- 9780191602504
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199267758.003.0008
- Subject:
- Economics and Finance, Financial Economics
Presents an overview of Part 2 of the book—the management of financial crises. Sovereign bankruptcy and creditor coordination are at the center of this debate. The contractual and statutory ...
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Presents an overview of Part 2 of the book—the management of financial crises. Sovereign bankruptcy and creditor coordination are at the center of this debate. The contractual and statutory approaches to crisis resolution, which lay stress on collective action clauses and formal structures for sovereign debt restructuring are introduced.Less
Presents an overview of Part 2 of the book—the management of financial crises. Sovereign bankruptcy and creditor coordination are at the center of this debate. The contractual and statutory approaches to crisis resolution, which lay stress on collective action clauses and formal structures for sovereign debt restructuring are introduced.
George J. Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer
- Published in print:
- 2006
- Published Online:
- February 2006
- ISBN:
- 9780195305838
- eISBN:
- 9780199783342
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305833.003.0002
- Subject:
- Economics and Finance, Financial Economics
Investors, creditors, government officials, and others require information to evaluate companies’ economic position, performance, and prospects. This chapter examines the usefulness of financial ...
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Investors, creditors, government officials, and others require information to evaluate companies’ economic position, performance, and prospects. This chapter examines the usefulness of financial accounting statements and their limitations in providing this information, particularly measures of economic values. The essential features of the traditional market-transaction, cost-based accounting system, and the benefits and costs of fair-value accounting and of audits and attestations by independent public accountants (IPAs) are described and evaluated.Less
Investors, creditors, government officials, and others require information to evaluate companies’ economic position, performance, and prospects. This chapter examines the usefulness of financial accounting statements and their limitations in providing this information, particularly measures of economic values. The essential features of the traditional market-transaction, cost-based accounting system, and the benefits and costs of fair-value accounting and of audits and attestations by independent public accountants (IPAs) are described and evaluated.
Irit Mevorach
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199544721
- eISBN:
- 9780191705564
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199544721.003.0009
- Subject:
- Law, Company and Commercial Law
This chapter focuses on the possibility of the approach proposed in previous chapters to generate certain and predictable rules. It starts by demonstrating problems of unpredictability when applying ...
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This chapter focuses on the possibility of the approach proposed in previous chapters to generate certain and predictable rules. It starts by demonstrating problems of unpredictability when applying existing frameworks for cross-border insolvency to the MEG case. It suggests that the model proposed in this work improves predictability. As the variety of linking mechanisms proposed is matched to typical cases of MEG insolvency, the possible solutions are sufficiently generalized and so improve clarity. It also makes the rules generally foreseeable by voluntary creditors. There are clear distinctions between the different linking mechanisms, mainly the procedural and substantive consolidation, and centralization versus other ‘lightweight’ global linking tools. Certainly, this should be accompanied by a clear standard for ascertaining the ‘home country’ of the MEG for the purpose of centralizing proceedings where appropriate. It is suggested that the operational head office as key factor produces a rather unequivocal and stable home country standard.Less
This chapter focuses on the possibility of the approach proposed in previous chapters to generate certain and predictable rules. It starts by demonstrating problems of unpredictability when applying existing frameworks for cross-border insolvency to the MEG case. It suggests that the model proposed in this work improves predictability. As the variety of linking mechanisms proposed is matched to typical cases of MEG insolvency, the possible solutions are sufficiently generalized and so improve clarity. It also makes the rules generally foreseeable by voluntary creditors. There are clear distinctions between the different linking mechanisms, mainly the procedural and substantive consolidation, and centralization versus other ‘lightweight’ global linking tools. Certainly, this should be accompanied by a clear standard for ascertaining the ‘home country’ of the MEG for the purpose of centralizing proceedings where appropriate. It is suggested that the operational head office as key factor produces a rather unequivocal and stable home country standard.
Jerome Roos
- Published in print:
- 2019
- Published Online:
- May 2019
- ISBN:
- 9780691180106
- eISBN:
- 9780691184937
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691180106.003.0007
- Subject:
- Business and Management, Public Management
This chapter takes a closer look at the main lending cycles of the 1820s and 1870s, as well as the creditors' responses to the subsequent waves of default. It suggests that key elements of the first ...
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This chapter takes a closer look at the main lending cycles of the 1820s and 1870s, as well as the creditors' responses to the subsequent waves of default. It suggests that key elements of the first and second enforcement mechanisms—market discipline and conditional lending—were already present in embryonic form at an early stage in capitalist development. Beside occasionally resorting to the instrumental power of gunboats, especially during the imperialist era, the partial effectiveness of these two mechanisms generally ensured compliance during the good times, thus laying the foundations for the internationalization of finance over the course of the nineteenth century, even as the relative weakness of the underlying enforcement mechanisms meant that periods of calm were regularly punctuated by unilateral payment suspensions in times of crisis.Less
This chapter takes a closer look at the main lending cycles of the 1820s and 1870s, as well as the creditors' responses to the subsequent waves of default. It suggests that key elements of the first and second enforcement mechanisms—market discipline and conditional lending—were already present in embryonic form at an early stage in capitalist development. Beside occasionally resorting to the instrumental power of gunboats, especially during the imperialist era, the partial effectiveness of these two mechanisms generally ensured compliance during the good times, thus laying the foundations for the internationalization of finance over the course of the nineteenth century, even as the relative weakness of the underlying enforcement mechanisms meant that periods of calm were regularly punctuated by unilateral payment suspensions in times of crisis.
Jerome Roos
- Published in print:
- 2019
- Published Online:
- May 2019
- ISBN:
- 9780691180106
- eISBN:
- 9780691184937
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691180106.003.0022
- Subject:
- Business and Management, Public Management
This concluding chapter summarizes key themes and presents some final thoughts. The three in-depth case studies of Mexico, Argentina, and Greece showed how the newfound insistence on full and ...
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This concluding chapter summarizes key themes and presents some final thoughts. The three in-depth case studies of Mexico, Argentina, and Greece showed how the newfound insistence on full and uninterrupted debt service has had far-reaching social implications, leading to a very skewed distribution of adjustment costs between private financiers in the advanced capitalist countries and working people inside the peripheral borrowing countries. The crises in these countries also signaled the start of a new era in international lending; a phase marked by the growing capacity of international creditors to shape the outcomes of major financial disturbances to their own advantage. This has, in turn, greatly undermined the quality of democracy in the debtor states, leading to more intrusive forms of creditor control and greater disregard for established democratic procedures.Less
This concluding chapter summarizes key themes and presents some final thoughts. The three in-depth case studies of Mexico, Argentina, and Greece showed how the newfound insistence on full and uninterrupted debt service has had far-reaching social implications, leading to a very skewed distribution of adjustment costs between private financiers in the advanced capitalist countries and working people inside the peripheral borrowing countries. The crises in these countries also signaled the start of a new era in international lending; a phase marked by the growing capacity of international creditors to shape the outcomes of major financial disturbances to their own advantage. This has, in turn, greatly undermined the quality of democracy in the debtor states, leading to more intrusive forms of creditor control and greater disregard for established democratic procedures.
Lord Denning
- Published in print:
- 1980
- Published Online:
- March 2012
- ISBN:
- 9780406176080
- eISBN:
- 9780191705113
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780406176080.003.0020
- Subject:
- Law, Constitutional and Administrative Law
In most countries of the world, a creditor can impound the property of his debtor — at the outset — long before he has got judgment against the debtor: and then have the property retained as security ...
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In most countries of the world, a creditor can impound the property of his debtor — at the outset — long before he has got judgment against the debtor: and then have the property retained as security for payment of the debt in case he afterwards gets judgment. This process is called in French saisie conservatoire and it means ‘a seizure of assets so as to conserve them for the creditor in case he should afterwards get judgment’. In England, in the past a creditor could seize nothing until he got judgment against the debtor. This was very serious for the creditor. Some time always elapsed between the issue of a writ and the obtaining of a judgment. All sorts of delaying tactics could be put up by a debtor. Meanwhile he could get rid of his assets in all kinds of ways.Less
In most countries of the world, a creditor can impound the property of his debtor — at the outset — long before he has got judgment against the debtor: and then have the property retained as security for payment of the debt in case he afterwards gets judgment. This process is called in French saisie conservatoire and it means ‘a seizure of assets so as to conserve them for the creditor in case he should afterwards get judgment’. In England, in the past a creditor could seize nothing until he got judgment against the debtor. This was very serious for the creditor. Some time always elapsed between the issue of a writ and the obtaining of a judgment. All sorts of delaying tactics could be put up by a debtor. Meanwhile he could get rid of his assets in all kinds of ways.
Lord Denning
- Published in print:
- 1980
- Published Online:
- March 2012
- ISBN:
- 9780406176080
- eISBN:
- 9780191705113
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780406176080.003.0026
- Subject:
- Law, Constitutional and Administrative Law
The law has placed no restriction on people going out of England to avoid tax or for any other reason. There was in olden days a writ called ne exeat regnum. The author states that he had never known ...
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The law has placed no restriction on people going out of England to avoid tax or for any other reason. There was in olden days a writ called ne exeat regnum. The author states that he had never known a case in modern times where this writ had been issued: and he thinks it is now obsolete. Especially now that imprisonment for debt has been abolished. A creditor has now a better remedy by way of a mareva injunction, which does not trespass upon personal liberty. But the law still does what it can to discourage citizens taking unfair advantage of their liberty to go abroad. This chapter discusses the case of Jersey, a favourite haven for the tax avoider. Furthermore, it also discusses those who operate companies registered abroad in tax-havens.Less
The law has placed no restriction on people going out of England to avoid tax or for any other reason. There was in olden days a writ called ne exeat regnum. The author states that he had never known a case in modern times where this writ had been issued: and he thinks it is now obsolete. Especially now that imprisonment for debt has been abolished. A creditor has now a better remedy by way of a mareva injunction, which does not trespass upon personal liberty. But the law still does what it can to discourage citizens taking unfair advantage of their liberty to go abroad. This chapter discusses the case of Jersey, a favourite haven for the tax avoider. Furthermore, it also discusses those who operate companies registered abroad in tax-havens.
Oliver Rieckers and Gerald Spindler
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199253166
- eISBN:
- 9780191601651
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199253161.003.0011
- Subject:
- Economics and Finance, Financial Economics
Although there are plenty of signs that the German model of corporate governance is indeed forced into a transition to a more capital market-oriented one, the remnants of the old modus operandi ...
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Although there are plenty of signs that the German model of corporate governance is indeed forced into a transition to a more capital market-oriented one, the remnants of the old modus operandi persist. In portraying the traditional legal foundations of German corporate governance, the present chapter first explores how such archetypal internal structures as the dual board system, mandatory labour codetermination and the specific legal regime for groups of companies are embedded in the fundamental structure of German corporate law.It then outlines some of the issues that define the ongoing transition process. The basic general thrust of this part is that the traditional corporate governance system, which has long been dominated by a focus on the legal rules determining the inner structures of the corporation, is more and more integrating new elements of an emerging body of capital market laws leaving German stock corporations under the governance of a non-uniform set of rules. Recent developments such as the German takeover law and the German Corporate Governance Code will further strengthen capital market orientation, but the final outcome of this process of modernisation cannot be assessed clearly yet.Less
Although there are plenty of signs that the German model of corporate governance is indeed forced into a transition to a more capital market-oriented one, the remnants of the old modus operandi persist. In portraying the traditional legal foundations of German corporate governance, the present chapter first explores how such archetypal internal structures as the dual board system, mandatory labour codetermination and the specific legal regime for groups of companies are embedded in the fundamental structure of German corporate law.
It then outlines some of the issues that define the ongoing transition process. The basic general thrust of this part is that the traditional corporate governance system, which has long been dominated by a focus on the legal rules determining the inner structures of the corporation, is more and more integrating new elements of an emerging body of capital market laws leaving German stock corporations under the governance of a non-uniform set of rules. Recent developments such as the German takeover law and the German Corporate Governance Code will further strengthen capital market orientation, but the final outcome of this process of modernisation cannot be assessed clearly yet.
