Abstract

Malawi has taken great strides in ensuring that the legal and regulatory environment is conducive towards the conduct of business and the attraction of Foreign Direct Investment (FDI). The country has taken commendable steps in reviewing and updating commercial and financial related laws to ensure that they align with generally acceptable international standards. Of interest to this research is the enactment of the Insolvency Act of 2016 which provides for comprehensive mechanisms for dealing with insolvency and bankruptcy. The research analyses the cross-border insolvency legal framework, adopted under Part X of the Act, which mostly deals with the insolvency of a corporation that has assets and creditors in more than one jurisdiction. The research notes that although the cross-border insolvency legal framework provides for comprehensive rules on jurisdiction, recognition and enforcement of foreign judgments, it does not include choice of law rules. In adjudicating a cross-border insolvency case, reliance will be placed on the common law choice of law rules. The study notes that the common law rules have been said to be ineffective, uncertain and unpredictable. The common law rules on choice of law in cross border insolvency are also inadequate to address the issues under a modern cross-border insolvency legal framework. The research hence analyses the legal implications of the exclusion choice of law rules under the Insolvency Act 2016. The research further analyses the legal effect of applying the common law rules, which are based on the theory of universalism, under the Insolvency Act 2016 which adopts the principle of modified- universalism.

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School	: School of Law, Economics and Government
Issued Date	: 2017

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