Transparency and prevention for corporate bankruptcy: a US-France comparison


Journal of Business Law

2009, n°6, pp.525-542

Départements : Droit et fiscalité, GREGHEC (CNRS)

The laws governing insolvency across the world can schematically be divided into two categories: the first encourages continuity of the business while the second favors the creditors. The U.S. and France belong to the first category. However, a recent reform in France tends to move this country from the first to the second category. This article aims at comparing the prevention of business difficulties in the U.S. and France. The first part discusses prevention with disclosure of information (filing financial statements and disclosure of specific information) and the second part discusses the pre-judicial treatment of business difficulties with the warning procedure and the independent receiver.Comparative law; Corporate insolvency; Financial reporting; Financial statements; France; Transparency; United States