The Peculiarities of Opening the Rehabilitation Process in the Context of Georgian and Japanese Law

Authors

  • Sesili Kadaria Georgian National University SEU

Keywords:

„Civil RP“, “SLP, “BP”, “RL”, Regulated Agreement, Conversion and more

Abstract

The article "Peculiarities of opening the Rehabilitation Process in the context of Georgian and Japanese Law" discusses the beginning of the rehabilitation process by a legal-comparative method, Georgian legislative novelty, and vague norms that need to be refined in the Georgian reality. Effective insolvency legislation is a key tool for maintaining economic stability, the government also has an important role and responsibility to create a legal framework that will help maintain the viability of the enterprise in times of financial difficulties.

It is clear that during the elaboration of the new law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors" (enacted on April 1, 2021), significant research was carried out by the group. “Legislative Guide to Insolvency Law" by the UN Commission on International Trade Law (UNCITRAL) was studied, as well as International Principles on “Effective Insolvency and Protection of Debtor and Creditor Rights” developed by the World Bank. The new law clearly outlined the role of rehabilitation as a target and named the debtor's rehabilitation as the country's priority. Moreover, its purpose is to encourage timely appeal to the court. The enactment of the law has eliminated the shortcomings that, in many cases, significantly delay the process.

It should be noted that a lot of attention was paid to Japanese law during the drafting of the bill, as according to the World Bank, it is in the top three countries in Insolvency Law. Based on the court rulings, the article presents the obstacles to the rehabilitation process in theoretical and practical terms, discusses the vague norms of the new legislation of Georgia, and offers modern visions of regulation.

Published

2021-12-20