The rules governing the bankruptcy of companies from the perspective of employee protection

Document Type : Original Article

Authors

1 university of Tehran

2 Ph. D. Student, Faculty of Law & Political Science, University of Tehran, Tehran, Iran

Abstract

Companies supplies present and future needs of their employees. Therefore, the survival of the company is very important for its employees. However, in some cases the bankruptcy of the company and entry into the process of liquidation is inevitable. The present study uses a descriptive-analytic approach and comparatively, sought to answer the key questions that bankruptcy rules of Iranian commercial companies how much support to the workforce and are available tools in this context efficient or not? The results of the research show that the legal system of Iran in comparison with the French and British has poor regulations about the prevention of corporate bankruptcy and the preservation of employees' job position. Support mechanisms for employee claims (such as privileging employees' claims) are also ineffective and inefficient. Therefore it is necessary that in the new draft law on the commercial, in addition to strengthening the protection of employees' right to receive their claims, based on social interests an insurance institution be provided

Keywords

Main Subjects


  1. منابع انگلیسی

    1. Albhadily,M. and Guthrie, R. Insolvency Protection for Employee Entitlements: International Alternatives to GEER Scheme, Journal Of Applied Law And Policy, 2010.
    2. Anderson, Helen, Corporate Insolvency and the Protection of Lost Employee Entitlements: Issues in Enforcement, Australian Journal of Labour Law, Volume 26, Issue 1, 2013.
    3. Davies P. and Worthington S., Gower and Davies’ Principles of Modern company Law,2012, 9th ed.
    4. Finch, Venessa, Corporate Insolvency Law, Cambridge University Press, (2009).
    5. Garrido, J. M. ‘The distributional question in insolvency: comparative aspects’ 4 International Insolvency Review, (1995).
    6. Goode, Royston mile, Principles of corporate insolvency law, Sweet & Maxwell, 2011.
    7. Hansmann, H. ‘When does worker ownership work? ESOPs, law firms, codetermination, and economic democracy’ 99 Yale Law Journal, (1990).
    8. Marius P. O., Smit, Nicola and Kalula, E R (eds), Social Security: A Legal Analysis, (2003).
    9. Milman, D. ‘Priority Rights on Corporate Insolvency in A. Clarke (ed.), Current Issues in Insolvency Law (Stevens & Sons, London, (1991).
    10. Mucciarelli, M. Federico, Employee insolvency priorities and employment protection in France, Germany and the United Kingdom, 2017.
    11. Prentice D. D., interests and directors duties, 10 oxf. I.L.S. (1990).
    12. Ramsay, I. ‘Holding Company Liability for the Debts of an Insolvent Subsidiary: A Law and Economics Perspective 17 University of New South Wales Law Journal, 1994.
    13. Scott, R. ‘A Relational Theory of Secured Financing ,86 Columbia Law Review, (1986).
    14. Tucker, E. ‘Shareholder and director liability for unpaid workers’ wages in Canada: from condition of granting limited liability to exceptional remedy 26 Law and History Review 58,2008.
    15. Williamson, O. The economic institutions of capitalism (1985).
    16. World Bank, Principles and Guidelines for Effective Insolvency and Creditor Rights System,2001.