Standing of Insolvency Administrators in Investment Treaty Arbitration
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11220%2F22%3A10448185" target="_blank" >RIV/00216208:11220/22:10448185 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Standing of Insolvency Administrators in Investment Treaty Arbitration
Original language description
This chapter explores the consequences of an insolvency administration for the standing of claimants in investment arbitration. In practice, the imposition of the insolvency administration on the claimant investor is a frequently invoked ground for a challenge of its standing in the arbitral proceedings. During insolvency, an indebted legal entity is generally represented by an administrator who primarily supervises its activities and takes steps with a view to business rescue or, where this is not possible, sale of the estate. The scope of the administrator's powers largely depends on the type of the insolvency proceedings and differs also across individual jurisdictions. As the common goal is maximising the value of the debtor's assets, the administrators are usually empowered to grant or refuse authorisation for the debtors' legal acts and to varying degrees also dispose of the estate. For investors involved in arbitration against the host state, insolvency may bring several practical difficulties as administrators can assume the power to represent the claimant in the proceedings instead of legal counsels and their control over the investor's activities can raise doubts as to the claimant's nationality pursuant to the applicable investment agreement. Furthermore, although insolvency administrators are required to act impartially and independently in discharging their duties, one can also point to the risk of the host state abusing insolvency to subvert the arbitral proceedings and compel the claimant to withdraw its claims. In this regard, tribunals are required to adopt adequate safeguards to prevent any abuse of process.
Czech name
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Czech description
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Classification
Type
C - Chapter in a specialist book
CEP classification
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OECD FORD branch
50501 - Law
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Book/collection name
Crossroads of Insolvency and Arbitration
ISBN
978-94-035-4531-8
Number of pages of the result
23
Pages from-to
41-63
Number of pages of the book
245
Publisher name
Kluwer Law International B.V.
Place of publication
Alphen aan den Rijn
UT code for WoS chapter
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