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Involuntary creditors and the case for accounting-based distribution regulation

Kershaw, David (2007) Involuntary creditors and the case for accounting-based distribution regulation. LSE law, society and economy working papers (16-2007). Department of Law, London School of Economics and Political Science, London, UK.

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This article argues that accounting-based distribution regulation provides variable and at times significant protection to both existing involuntary creditors - by increasing the probability that they will be paid – and the constituency of involuntary creditors - by decreasing the probability that companies’ actions will produce involuntary creditors. These benefits become visible when close attention is paid to the interaction of applicable accounting standards on the recognition of provisions with the UK’s existing distribution regime. Whilst the current debate and reform consensus correctly analyses the relationship between the current regime and adjusting creditors, the article argues that the organising category of the ‘capital maintenance doctrine’ has obstructed inquiry into the ways in which the existing rules’ dependence on accounting standards results in benefits for involuntary creditors.

Item Type: Monograph (Working Paper)
Official URL:
Additional Information: © 2007 The Author
Divisions: Law
Subjects: K Law > K Law (General)
Date Deposited: 28 Jul 2009 15:00
Last Modified: 15 Sep 2023 23:09

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